Lambda Computer Products competed for and won a contract to produce two prototype units of a new type of computer that is based on laser optics rather than on electronic binary bits. The first unit produced by Lambda took 5,000 hours to produce and required $250,000 worth of material, equipment usage, and supplies. The second unit took 3,500 hours and used $200,000 worth of materials, equipment usage, and supplies. Labor is $30 per hour. Use Exhibit 6.5. a. Lambda was asked to present a bid for 10 additional units as soon as the second unit was completed. Production would start Immediately. What would this bid be? Cost for 10 more units

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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Ch. 6 Q8
Lambda Computer Products competed for and won a contract to produce two prototype units of a new type of computer that is based
on laser optics rather than on electronic binary bits.
The first unit produced by Lambda took 5,000 hours to produce and required $250,000 worth of material, equipment usage, and
supplies. The second unit took 3,500 hours and used $200,000 worth of materials, equipment usage, and supplies. Labor is $30 per
hour. Use Exhibit 6.5.
a. Lambda was asked to present a bid for 10 additional units as soon as the second unit was completed. Production would start
Immediately. What would this bld be?
Cost for 10 more units
Transcribed Image Text:Lambda Computer Products competed for and won a contract to produce two prototype units of a new type of computer that is based on laser optics rather than on electronic binary bits. The first unit produced by Lambda took 5,000 hours to produce and required $250,000 worth of material, equipment usage, and supplies. The second unit took 3,500 hours and used $200,000 worth of materials, equipment usage, and supplies. Labor is $30 per hour. Use Exhibit 6.5. a. Lambda was asked to present a bid for 10 additional units as soon as the second unit was completed. Production would start Immediately. What would this bld be? Cost for 10 more units
exhibit 6.5
excel
For the Excel
pds vad
wwww..conjecobs He
Improvement Curves: Table of Cumulative Values
UNIT
1
2
3
4
6
6
7
8
9
10
12
14
16
18
4.946
5.171
5.379
24
5.574
25
5.668
30 6.097
35
6.478
40
20
22
300
360
400
450
500
600
60%
1.000
1.600
2.045
2.405
2.710
2.977
3.216
3.432
3.630
3.813
4.144
4.438
4.704
700
800
900
1,000
1,200
1,400
1,600
1,800
2,000
2,500
3,000
6.021
65%
45
7.134
50
7.422
60
7941
70
8.401
80 8.814
90
9191
100
9.539
120
10.16
140
10.72
160
11.21
180
11.67
200
12.09
250
13.01
13.81
14.51
15.14
15.72
24.00
16.26 25.68
17.21
27.67
18.06
18.62
19.51
20.15
21.30
22.32
23.23
24.06
24.83
26.53
27.99
1.000
1.650
2.155
2.260
2.578
2.750
2946 3.195
3274
3.503
3.572
3.900
3.847
4.102
4.341
6.773
6.909
7.540
8.109
8.631
9.114
4.626
4.931
4.780
5.501
5.177
6.026
5.541
6.514
5.879
6.972
6.195 7.407
6.492
7.819
8.213
8.404
9.305
10.13
10.90
11.62
12.31
13.57
14.74
9.565
10.39
11.13
11.82
12.45
13.03
14.11
16.09
15,97
16.79
17.55
19.28
CUMULATIVE IMPROVEMENT FACTOR
70%
75%
80%
85%
1.000
1,000 1.000 1.000
1.700
1.750
1.800
1.850
2.384
2.502
2.623
2.946 3.142
3.345
3.450 3.738 4.031
3.934
4.299
4.688
4.380
4.834
5.322
4.802 5,346
5.936
5.204
5.839
6.533
5.509 6.315
7.116
8.315
7.227
6.994
8.092 9.331
10.72
7,635
8.920
10.38
12.04
8.245
9.716
11.41
13.33
8.628
10.48
12.40
14.61
11.23
13.38
15.06
11.95
17.10
12.31
14.80
17.71
14.02
17.09 20.73
15.64
19.29
23.67
17.19
21.43
26.54
18.68
23.50
29.37
20.12
25.61
32.14
22.87
29.41
37.57
47.65
25.47 33.17
42.87
54.99
27.96
36.80
48.05
62.25
30.35
40.32
53.14
69.45
32.65
43.75
58.14
76.59
37.05
50.39
67.93
90.71
41.22
56.78
77.46
104.7
45.20
62.95 86.80 118.5
49.03
68.95
95.96
132.1
36.80
52.72
74.79
145.7
42.05 61.47 88.83
179.2
46.94
69.66
102.2
212.2
51.48
77.43
115.1
55.75
127.6
59.80
63.68
70.97
77.77
84.18
90.26
06.07
107.0
117.2
126.8
135.9
144.7
165.0
183.7
20.81
22.18
23.44
29.45
31.09
32.60
31.01
36.59
38.92
41.04
43.00
44.84
48.97
52.62
4.303
15.82
16.03
17.79
19.57
21.20
22.72
24.14
25.48
28.56
31.34
33.89
36.26
38.48
40.58
44.47
48.04
51.36
54.46
57.40
62.85
67.85
72.49
76.85
80.96
90.39
98.90
9.388
9.928
10.19
11.45
12.72
13.72
14.77
15.78
17.67
19.43
21.09
22.67
24.16
27.02
29.67
32.17
34.54
84.85
91.97
98.85
112.0
124.4
136.3
147.7
158.7
179.7
199.6
218.6
236.8
254.4
296.1
335.2
8.244
14.33
139.7
151.5
174.2
196.1
217.3
237.9
257.9
296.6
333.9
369.9
404.9
438.9
520.8
508.9
90%
1.000
1.900
2.746
3.556
4.330
5,101
5.845
6.574
7.290
7.994
9.374
105.0
126.9
148.2
169.0
189.3
209.2
228.8
267.1
304.5
341.0
376.9
412.2
481.2
548.4
614.2
678.8
742.3
897.0
1047
95%
1.000
1.950
2.872
3,774
4.662
5.538
6.404
7.261
8.111
8.955
10.62
12.27
13.91
15.52
17.13
18.72
20.31
21.10
25.00
28.86
32.68
36.47
40.22
244.8
277.0
309.0
340.6
403.3
465.3
526.5
587.2
6474
766.6
884.2
1001
1116
1230
1513
1791
Transcribed Image Text:exhibit 6.5 excel For the Excel pds vad wwww..conjecobs He Improvement Curves: Table of Cumulative Values UNIT 1 2 3 4 6 6 7 8 9 10 12 14 16 18 4.946 5.171 5.379 24 5.574 25 5.668 30 6.097 35 6.478 40 20 22 300 360 400 450 500 600 60% 1.000 1.600 2.045 2.405 2.710 2.977 3.216 3.432 3.630 3.813 4.144 4.438 4.704 700 800 900 1,000 1,200 1,400 1,600 1,800 2,000 2,500 3,000 6.021 65% 45 7.134 50 7.422 60 7941 70 8.401 80 8.814 90 9191 100 9.539 120 10.16 140 10.72 160 11.21 180 11.67 200 12.09 250 13.01 13.81 14.51 15.14 15.72 24.00 16.26 25.68 17.21 27.67 18.06 18.62 19.51 20.15 21.30 22.32 23.23 24.06 24.83 26.53 27.99 1.000 1.650 2.155 2.260 2.578 2.750 2946 3.195 3274 3.503 3.572 3.900 3.847 4.102 4.341 6.773 6.909 7.540 8.109 8.631 9.114 4.626 4.931 4.780 5.501 5.177 6.026 5.541 6.514 5.879 6.972 6.195 7.407 6.492 7.819 8.213 8.404 9.305 10.13 10.90 11.62 12.31 13.57 14.74 9.565 10.39 11.13 11.82 12.45 13.03 14.11 16.09 15,97 16.79 17.55 19.28 CUMULATIVE IMPROVEMENT FACTOR 70% 75% 80% 85% 1.000 1,000 1.000 1.000 1.700 1.750 1.800 1.850 2.384 2.502 2.623 2.946 3.142 3.345 3.450 3.738 4.031 3.934 4.299 4.688 4.380 4.834 5.322 4.802 5,346 5.936 5.204 5.839 6.533 5.509 6.315 7.116 8.315 7.227 6.994 8.092 9.331 10.72 7,635 8.920 10.38 12.04 8.245 9.716 11.41 13.33 8.628 10.48 12.40 14.61 11.23 13.38 15.06 11.95 17.10 12.31 14.80 17.71 14.02 17.09 20.73 15.64 19.29 23.67 17.19 21.43 26.54 18.68 23.50 29.37 20.12 25.61 32.14 22.87 29.41 37.57 47.65 25.47 33.17 42.87 54.99 27.96 36.80 48.05 62.25 30.35 40.32 53.14 69.45 32.65 43.75 58.14 76.59 37.05 50.39 67.93 90.71 41.22 56.78 77.46 104.7 45.20 62.95 86.80 118.5 49.03 68.95 95.96 132.1 36.80 52.72 74.79 145.7 42.05 61.47 88.83 179.2 46.94 69.66 102.2 212.2 51.48 77.43 115.1 55.75 127.6 59.80 63.68 70.97 77.77 84.18 90.26 06.07 107.0 117.2 126.8 135.9 144.7 165.0 183.7 20.81 22.18 23.44 29.45 31.09 32.60 31.01 36.59 38.92 41.04 43.00 44.84 48.97 52.62 4.303 15.82 16.03 17.79 19.57 21.20 22.72 24.14 25.48 28.56 31.34 33.89 36.26 38.48 40.58 44.47 48.04 51.36 54.46 57.40 62.85 67.85 72.49 76.85 80.96 90.39 98.90 9.388 9.928 10.19 11.45 12.72 13.72 14.77 15.78 17.67 19.43 21.09 22.67 24.16 27.02 29.67 32.17 34.54 84.85 91.97 98.85 112.0 124.4 136.3 147.7 158.7 179.7 199.6 218.6 236.8 254.4 296.1 335.2 8.244 14.33 139.7 151.5 174.2 196.1 217.3 237.9 257.9 296.6 333.9 369.9 404.9 438.9 520.8 508.9 90% 1.000 1.900 2.746 3.556 4.330 5,101 5.845 6.574 7.290 7.994 9.374 105.0 126.9 148.2 169.0 189.3 209.2 228.8 267.1 304.5 341.0 376.9 412.2 481.2 548.4 614.2 678.8 742.3 897.0 1047 95% 1.000 1.950 2.872 3,774 4.662 5.538 6.404 7.261 8.111 8.955 10.62 12.27 13.91 15.52 17.13 18.72 20.31 21.10 25.00 28.86 32.68 36.47 40.22 244.8 277.0 309.0 340.6 403.3 465.3 526.5 587.2 6474 766.6 884.2 1001 1116 1230 1513 1791
Expert Solution
Step 1

Time taken by first unit to produced (T1) =  5000Time taken by second unit to produced (T2) = 3500Labor cost = $30

 

 

 

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