How many workstations will be required next year

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Reference no: EM13215543

Tuff-Rider, Inc., manufactures touring bikes and mountain bikes in a variety of frame sizes, colors, and component combinations. Identical bicycles are produced in lots of 100. The projected demand, lot size, and time standards are shown in the following table:

Item Touring Mountain
Demand forecast 6,000 units /year 8,000 units/year
Lot size 100 units 100 units
Standard processing time 0.2 hours/unit 0.75 hours/unit
Standard setup time 2 hours/lot 3 hours/lot

The shop currently works 8 hours a day, 5 days a week, 52 weeks a year. It operates 5 workstations, each producing one bicycle in the time shown in the table. The shop maintains a 15 percent capacity cushion.

How many workstations will be required next year to meet expected demand without using overtime and without decreasing the firm's current capacity cushion?

Reference no: EM13215543

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