Operations Management Quiz

Question

A company negotiates a price for two aircraft that includes a reduction in labour on the second aircraft consistent with a 70% learning curve. suppose the first aircraft took 100 hours. If the improvement rate changes to 20%, how will the total time to complete both aircraft change?

a) no change

b) -10 hours

c) + 10 hours

d) -50 hours

e) +50 hours

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