Explain how many workstations will be required next year

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Reference no: EM1374769

Q. 2. Tuff-Rider, Inc., manufactures touring bikes and mountain bikes in a variety of frame sizes, colours and comp1nt combinations. Identical bicycles are produced in lots of 100. project demand, lot size and time standards are shown in subsequent table:

tem Touring Mountain

Demand forecast 5,000 units/year 10,000 units/year

Lot size 100 units 100 units

Standard processing time .25 hour/unit .50 hour/lot

Standard setup time 2 hours/lot 3 hours/lot

Shop currently works 8 hours per day, 5 days a week, 50 weeks a year. It operates 5 workstations, each producing 1 bicycle in time shown in table. shop maintains a 15 percent capacity cushion. Explain how many workstations will be required next year to meet expected demand without using overtime and without decreasing firm's current capacity cushion?

Reference no: EM1374769

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