3.2. Optimum Unit Production Cost Discussion

Try these first

1. 1.

   What is the truck cycle time if it is given as 39.5 minutes?

   Hint

   Consider the definition of truck cycle time.

2. 2.

   Define unit production cost.

   Hint

   Think about how costs relate to production outputs.

3. 3.

   What is the balance number of trucks calculated in the section?

   • 5
   • 7
   • 8

   Hint

   Think about how rounding impacts optimal numbers.

4. 4.

   True or False: Increasing the number of trucks beyond the balance number always increases productivity.

   • True
   • False

   Hint

   Consider how operational limits can restrict outputs.

5. 5.

   If the truck’s costs increase by 10% yet the productivity remains the same post the balance number, how does this affect overall production costs?

   Hint

   Calculate the new cost and compare it with prior costs to see the impact.

6. 6.

   Calculate the unit production cost with 9 trucks after determining earlier values of costs and productivity.

   Hint

   Utilize the formula for unit cost and ensure you factor in the capped productivity.