ExperienceCurveUnit cost degression due to gaining experience |
 |
Diagram
Information
This information is part of the Business Simulation Library (BSL). Please support this work and ► donate.
The output y describes the input that is needed to produce one unit. The experience curve describes the often observed empirical trend, that with every doubling in cumulated production, the effort or cost needed per unit (e.g., unit cost) will shrink by a constant percentage (learningRate), see Louwen and Subtil Lacerda [27] for an introduction.
The output y is obtained by the following formula:
Notes
- If
hasCumulatedInput = truethe input u is assumed to be the cumulated value of production (N) and the initial production (N_0) is initialized with the initial value of u (unlessu < 1, in which case the initial production is initialized to 1). - If
hasCumulatedInput = falsethe input u is assumed to be the current rate of production which will be accumulated starting withN_0 = 1. - Optionally, a limit for the output value (
costLimit) can be given. It will be either a floor (learningRate >= 0) or a ceiling (learningRate < 0). .
Parameters (5)
| initialCost |
Value: 1 Type: OutputType Description: Inial value of cost, time, defects etc. being affected by experience |
|---|---|
| learningRate |
Value: 0.2 Type: Dimensionless Description: Learning rate (LR) stating the relative reduction for each doubling of cumulated production |
| costLimit |
Value: 0 Type: OutputType Description: Minimum or maximum cost level (depending on sign of learning rate), which is not to be exceeded |
| hasCumulatedInput |
Value: false Type: Boolean Description: = true, if input u is cumulated production value; false, if u is the current production value |
| hasLimit |
Value: false Type: Boolean Description: = true, if output y will not be below the given limit or exceed it |
Connectors (2)
 |
u |
Type: RealInput Description: Input of output the cumulation of which triggeres learning |
|---|---|---|
 |
y |
Type: RealOutput Description: Costs, productivity, defects etc. being affected by experience |
Components (14)
 |
modelSettings |
Type: ModelSettings Description: Setting important global variables within a model |
|---|---|---|
 |
cumulatedProduction |
Type: InformationLevel Description: Accumulated output driving learning |
 |
producing |
Type: Growth Description: Output generation |
 |
normalizedOuput |
Type: Division Description: Division without protection against division by zero |
 |
referenceProduction |
Type: ConstantConverter Description: Reference level of output |
 |
effectLearning |
Type: Power Description: Total effect of experience |
 |
cumulatedOutput |
Type: Max Description: Cumulated output driving learning if input is already cumulated value |
|
log2ProgressRatio |
Type: ConstantConverter Description: Binary logarithm of progress ratio |
 |
actualCosts |
Type: Product_2 Description: Actual level for influenced variable |
|
referenceCost |
Type: ConstantConverter Description: Initial level of influenced variable |
|
minCumProd |
Type: ConstantConverter Description: Minimum cumulated production |
 |
unchanged |
Type: PassThrough Description: Output is identical to input |
 |
ceiling |
Type: Clip Description: Do not exceed maximum value |
|
floor |
Type: Clip Description: Do not go below minimum value |
Revisions
- Introduced in v2.1.0.