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Jericho vehicles is considering making a bid for a mobile rocket launching system for the U.S. military. However, the company has almost no experience in producing this type of vehicle. In an effort to develope a learning curve for the production of this new mobile weapon system, management has called contacts from several former competitors who went bankrupt. Although management could not obtain direct learning curve rates, they did learn from one contact that for a system with similar features, the first unit required 2400 hours of direct labor to produce and the 30th and final unit required 1450 hours to produce. Determine the learning curve rate for this vehicle.

Operation Management, Management Studies

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