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Best’s Bicycles manufactures three different types of bikes: the Tiny Tike, the

ID: 412290 • Letter: B

Question

Best’s Bicycles manufactures three different types of bikes: the Tiny Tike, the Adult Aero, and the Mountain Monger. Given the information in the table, calculate the required capacity for this year’s production. Note that the times are given for assembly lines, so capacity calculations should be in terms of the number of lines necessary. Assume that Best Bicycles operates three shifts, each with 2,000 hours per year.

Demand Forecast (units/year)

A. Determine the total setup time

B. Determine the total operating time available

C.Determine the number of assembly lines

Bike

Demand Forecast (units/year)

Processing Time (minutes/unit) Lot size (# of bikes) Setup time (minutes/setup) Tiny Tike 14,000 8 15 50 Adult Aero 16,000 10 18 80 Mountain Monger 19,000 12 25 40

Explanation / Answer

Answer:- the total setup time can be calculated as below:-

Set up time for tiny bike = (14000/15)*50 =46666.67

Set up time for Adult Aero = (16000/18)*80 =71111.11

Set up time for Mountain Monger = (19000/25)*40 =30,400

Total set time =46666.67+71111.11+30400=148177.8

Answer:- Total Operating time =3 shifts/day *2000 hours/shift/year*60 minutes/hour =360,000 minutes/year

Answer:-

Number of assembly lines =(total processing time+ total setup time) (total operating time) +1

total setup time=148177.8

Total Operating time=360,000 minutes/year

total processing time:-

Processing time for tiny bike = 14000*8 =112,000

Processing time for Adult Aero = 16000*10 =160,000

Processing time for Mountain Monger = 19000*12 =228,000

Total Processing time = 112,000+160,000+228,000=500,000

Number of assembly lines =(500,000+148177.8)/360,000 + 1 =1.8+1 =2.8 = 3

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