Lecture 5 - Learning Curves What is it? An integral part in...

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Learning Curves What is it? An integral part in corporate strategy, such as decisions concerning pricing, capital investment, and operating costs based on experience curves Individual learning – the improvement that results when people repeat a process and gain skill or efficiency from the experience Usefulness: as a tool for estimating operating costs (particularly the labor component) Manpower planning and scheduling Negotiated purchasing Pricing new products Budgeting, purchasing, and inventory planning Capacity planning A graph displaying the relationship between unit production time and the cumulative number of units produced (or repetition)
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Learning Curve Theory Assumptions: (1) The amount of time required to complete a given task or unit of a product will be less each time the task is undertaken (2) The unit time will decrease at a decreasing rate (3) The reduction in time will follow a predictable pattern – that is, every doubling of
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This note was uploaded on 04/03/2012 for the course BAIT 386 taught by Professor Avi-itzchak during the Spring '12 term at Rutgers.

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Lecture 5 - Learning Curves What is it? An integral part in...

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