To explain: The reason why learning curve mainly applies to direct labor rather than indirect labor.
Purchasing and supply chain analysis tools and techniques:
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Explanation of Solution
The learning curve is the rate of improvement in the production process or efficiency due to the knowledge gained over time in a particular course of action. Direct labor affects the time taken to develop directly. Indirect labor does not have a direct impact on the development of a product.
Learning curve applies only to the direct labor time involved in developing a product. Usually, a product development time is reduced by cutting the direct labor time with the help of the learning curve. Therefore, there is only one labor associated with the labor curve.
Hence, learning curve mainly applies to direct labor rather than indirect labor.
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Chapter 12 Solutions
Purchasing and Supply Chain Management
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