Big Mike Has to Prepare a Bid for the Swimming

question 46

Essay

Big Mike has to prepare a bid for the swimming pools to be placed in every backyard in a new housing addition.Each swimming pool represents only a slight variation on the other,so there is a good opportunity to leverage learning effects in the bid process.A swimming pool installation can be broken down into four major steps: excavation,concrete,plumbing,and finish work.Mike has found the best contractors and asks each of them how long it will take to complete work on the first pool and what their learning rates are.Amazingly,each contractor is intimately familiar with learning curve theory and knows what his learning rate is for this type of work.This information is summarized in the table.
$$\begin{array} { | l | l | l |}\hline \text { Furnction } & \text { First Pool } & \text { Learning Rate } \\\hline \text { Excavation } & 22 \text { hours } & .95 \\\hline \text { Concrete } & 32 \text { hours } & .90 \\\hline \text { Plumbing } & 10 \text { hours } & .85 \\\hline \text { Finishirg } & 30 \text { hours } & .85 \\\hline\end{array}$$ How long will it take to complete the 25th pool for the subdivision?
How long will it take to complete all 25 pools for the subdivision?

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Definitions:

Future Demand

The projected need or desire for products or services at some point in the future, based on current trends, data, or predictions.

No-need Objection

A type of resistance or hesitation expressed by a potential customer, based on the belief that they do not need the product or service being offered.

Prospect

A prospect is a potential customer who has been identified as having the interest and ability to purchase a product or service.

Sales Presentation

A promotional talk or pitch aimed at generating interest in a product or service.