Chapter 1: Q1PE. (page 144)
The line that shows the relationship between the time to produce a unit and the cumulative number of units produced.
Learning Curve shows the relationship between the time of unit production and the cumulative number of units produced.
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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.
A screening criterion that permits a firm’s products to be considered as possible candidates for purchase.
“Project control should always focus on the critical path.” Comment.
A useful tool for the economic analysis of a product development project.
What is the capacity balance? Why is it hard to achieve? What methods are used to deal with capacity imbalances?
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