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Curves Essay Topics & Paper Examples

Case Discussion: Learning Curve “B” – Assignment

What do you estimate the buyer should pay per unit for the next 700 pieces assuming the supplier demonstrates a 75% learning curve? What if the learning rate is actually 85%? What do you estimate is the per unit cost of the next 700 pieces? 1.A:$178/unit at a 75% Learning Curve 212/unit at an 85% Learning Curve 2. Under what conditions can we use learning curves to estimate prices? In other words, when does the learning curve apply? 2. A:The Learning Curve is applicable when used for new products or processes that have a high potential for improvement, such as producing a technically complex item for the first time, or when an item has high direct-labor content. 3.Why can we…