An 80% Learning Rate Means That the Time Falls by 20

question 46

True/False

An 80% learning rate means that the time falls by 20% at each doubling of output.

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Definitions:

Marginal Cost

This is the additional cost of producing one more unit of a good or service.

Multiple Suppliers

A sourcing strategy where a company uses various suppliers to mitigate risks and ensure a steady supply of products or components.

Bullwhip Effect

The increasing fluctuation in orders that often occurs as orders move through the supply chain.

Orders Decrease

A situation where the number of orders for products or services is reducing, potentially impacting company revenue and production planning.