Posted in Operations and Supply Chain Terms, Total Reads: 2996
Definition: Experience curve
Experience curve is a graph showing the relation between the experainceeffect on the cost structure. The basic principle behind this is that as a firm goes on icreasing its experience it gains expertise in its operations and functions and as a result the overall cost for the firm to do a process keeps on decreasing. This idea was given the Boston Consulting Group in 1960 as a indicator for the semiconductor manufacturing firm after observing their the cost structure.