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You are in charge of a large assembly shop that specializes in contract assignments.

One of your customers has promised to award you a large contract for the assembly of 25 units of a new product. The suggested bid price in the contract is based on an average of 30hours of direct labour per unit.

You conduct a couple of test assemblies and find that, although the first unit took 50 hours, the second unitcould be completed in just 45 hours.

After you completed the order for the 25 units, another customerhas just placed an order for 25 units.For the second customer’s order, how many hours do you expect the assembly of the first unit to take? How many total labour hours will be needed to satisfy the second customer’s order?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92512550

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