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ORIE_3150_Homework__10_answers

ORIE_3150_Homework__10_answers - ORIE 3150 Homework#10 1...

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ORIE 3150 Homework #10 1. Depregno Industries is making a labor intensive industrial filter product. They found the fourth unit cost $30,000 in labor. The eighth unit had a labor cost of $26,100. Given that learning is taking place, find the expected labor cost for the: a. 7 th unit b. 11 th unit s = 26100/30000 = 0.87 n = (log s)/(log 2) = (log 0.87)/(log 2) = -0.200913 Z u = Ku n K = (30000)(4) 0.200913 = $39,635 Z 7 = (39,635)(7) -0200913 = $26,810 cost for 7 th unit Z 11 = (39,635)(11) -0200913 = $24,482 cost for 11 th unit Most of the problems seemed to stem from copying the answers from the previous semester. Obviously that is a bad idea.
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2. A contractor manufactures small backup power systems. Learning is taking place. Given the following data, estimate the cost of unit #6 and unit #10. Unit 1: $46,346 Unit 2: $38,941 Unit 3: $32,611 Unit 4: $31,929 Unit 5: $28,645 u Z Log u Log Z 1 46346 0 4.666012 2 38941 0.30103 4.590407 3 32611 0.477121 4.513364 4 31929 0.60206 4.504185 5 28645 0.69897 4.457049 slope -0.29529 n intercept 4.668997 46666 K Z 6 = Ku n = (46666)(6) -0.29529 = $27,493 Z 10 = Ku n = (46666)(10) -0.29529 = $23,643
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3. Johnson Manufacturing has the following data from its factory, collected on a monthly basis over the past eight months. . Production (Units) Cost of Goods Sold ($) 1184 480,000 570 354,000 681 369,000 1288 539,000 887 398,000 795 427,000 978 444,000 1089 483,000 a) Using linear regression, find the fixed cost per month and the variable cost per unit for the factory.
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