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3 years ago

A new product made from recycled bio-plastics needs 17 labor hours to complete the build for the first unit.

Business

1 answer:

alex41 [277]3 years ago

8 0

Answer:

12.3 hours

Explanation:

The formula that is used to calculate the average time to produce a unit:

y = aQ^b

y = Average time to produce one unit.

a = Time necessary to produce the first unit.

Q = Cumulative production in units.

b = Learning rate which is calculated using: log (percentage learning rate)/log 2.

In this case, we have to start by calculating b:

b= Log0,87/log2= -0.139/0.693= -0.200

Then, we have that a= 17 and Q=5 and replace this on the formula for the average time to produce one unit:

y= 17* 5^-0.200

y= 17*0,724= 12,3

According to this, the average labor hours required per unit to produce five units is 12.3 hours.

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