3.1. Graphical Representation of Unit Production Cost

Try these first

1. 1.

   What is the balance number calculated based on the provided cycle times?

   Hint

   Consider dividing the truck cycle time by the loader cycle time.

2. 2.

   What is the unit cost of production at 5 trucks with a total cost of 10950 rupees?

   Hint

   Divide total cost by productivity.

3. 3.

   What is the balance number calculated based on the provided cycle times?

   • 5
   • 7
   • 9

   Hint

   Use the cycle times provided to make this calculation.

4. 4.

   True or False: Productivity increases indefinitely as the number of trucks increases.

   • True
   • False

   Hint

   Consider the role of the loader in this context.

5. 5.

   If a loader operates at 90 cubic meters/hour and average truck costs and productivity patterns shift, deduce the most economic choice between 7 or 9 trucks.

   Hint

   Analyze the tradeoff between productivity and costs.

6. 6.

   Using a scenario where every additional truck beyond the balance number increases cost by 10% but yields no productivity increase, calculate the total costs for 5, 7, and 9 trucks.

   Hint

   Remember to compare unit costs at each level.