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Chapter 1: Q4PE (page 144)
Assuming an 80 percent learning rate, if the 4th unit takes 100 hours to produce, the 16th unit should take how long to produce?
It will require 64 hours.
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What are additional features of the IKEA concept (beyond its design process) that contribute to creating exceptional value for the customer?
A diagram showing the activities that support a company’s strategy.
Discuss design-based incrementalism, which is frequent product redesign throughout the product’s life. What are the pros and cons of this idea?
What are some capacity balance problems faced by the following organizations or facilities?
In considering a capacity expansion we have two alternatives. The first alternative is expected to cost \(1,000,000 and has an expected profit of \)500,000 over the next three years. The second alternative has an expected cost of \(800,000 and expected a profit of \)450,000 over the next three years. Which alternative should we select, and what is the expected value of the expansion? Assume a 10 percent interest rate.
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