Tuff-Rider, Inc., manufactures touring bikes and mountain bikes in a variety of
ID: 344353 • Letter: T
Question
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 90. The projected demand, lot size, and time standards are shown in the following table Item Demand forecast Lot size Standard processing time Standard setup time Touring 6,000 units/year 110 units 0.20 hourlunit 2 hours/lot Mountain 10,000 units/year 90 units 0.25 hourlunit 3 hours/lot The shop currently works 8 hours a day, 5 days a week, 48 weeks a year. It operates five 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? The number of workstations required next year is(Enter your response rounded up to the next whole number)Explanation / Answer
Projected demand of touring bicycles next year = 6000 units/ year
Lot size = 110 units
Number of lots = 6000/110
Total set up time = 2 hour/ lot x 6000/110 lots = 109.09 hours
Total processing time = 0.20 hours / unit x 6000 units = 1200 hours
Total time required = Total set up time + Total processing time = 109.09 + 1200 hour = 1309.09 hours
Projected demand for mountain bicycles next year = 10000 units
Lot size = 90 units
Number of lots = 10,000/90
Total set up time = 3 hour/lot x 10000/90 lots = 333.33 hours
Total processing time = 0.25 hours/ unit x 10000 units = 2500 hours
Total time required = Total set up time + Total processing time = 333.33 + 2500 = 2833.33 hours
Hence, total time required to produce touring as well as mountain bicycles next year
= 1309.09 hours + 2833.33 hours
= 4142.42 hours
Given that capacity cushion required = 15 %
Therefore, Capacity requirement
= Total time required to produce touring as well as mountain bicycles next year/ ( 1 – Capacity cushion%/100)
= 4142.42/ ( 1 – 0.15)
= 4142.42/0.85 hours
= 4873.43 hours
Availability of each workstation in a year = 8 hours/day x 5 days/ week x 48 weeks= 1920 hours
Therefore, number of workstations required
= 4873.43/ 1920
= 2.538 ( 3 rounded to next higher whole number )
THE NUMBER OF WORKSTATIONS REQUIRED NEXT YEAR = 3
THE NUMBER OF WORKSTATIONS REQUIRED NEXT YEAR = 3
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.