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The cost of production breaks

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  • Jeffrey D. Camm
  • Norman Keith Womer

Abstract

Disruptions in the production process can have a serious impact on production costs. Most of the previous literature which addresses the cost impact of production breaks attributes the observed increase in costs solely to “loss of learning.” We develop a mathematical model which implies that breaks in the unit learning curve can occur because of a production break, even under the assumption of no forgetting. In such cases, increases in unit cost can be caused by decreasing returns as the amount of time available to meet the delivery schedule decreases due to the production break.

Suggested Citation

  • Jeffrey D. Camm & Norman Keith Womer, 1987. "The cost of production breaks," Naval Research Logistics (NRL), John Wiley & Sons, vol. 34(2), pages 199-205, April.
    • Handle: RePEc:wly:navres:v:34:y:1987:i:2:p:199-205
    DOI: 10.1002/1520-6750(198704)34:23.0.CO;2-O
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    References listed on IDEAS

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    1. Womer, Norman K. & Gulledge, Thomas Jr, 1983. "A dynamic cost function for an airframe production program," Engineering Costs and Production Economics, Elsevier, vol. 7(3), pages 213-227, September.
    2. Norman Keith Womer, 1984. "Estimating Learning Curves from Aggregate Monthly Data," Management Science, INFORMS, vol. 30(8), pages 982-992, August.
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