Tuff Rider, Inc. manufactures touring bikes and mountain bikes in a variety of f
ID: 445132 • 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 100. The projected demand, lot size, and time standards are shown in the following table.
Item
Touring
Mountain
Demand Forecast
5,000 units / year
10,000 units / year
Lot Size
100 units
100 units
Standard Processing Time
¼ hour / unit
½ hour / unit
Standard Setup Time
2 hour / lot
3 hour / lot
The shop currently works eight hours a day, five days a week, 50 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?
Item
Touring
Mountain
Demand Forecast
5,000 units / year
10,000 units / year
Lot Size
100 units
100 units
Standard Processing Time
¼ hour / unit
½ hour / unit
Standard Setup Time
2 hour / lot
3 hour / lot
Explanation / Answer
Touring:
Annual demand (D) = 5000 units/year
Lot size (Q) = 100 units
Processing time (p) = 0.25 hours/unit
Set up time (s) = 2 hours/lot
Mountain:
Annual demand (D)= 10,000 units/year
Lot size (Q)=100 units
Processing time (p) = 0.5 hours/unit
Setup time (s) = 3 hours/lot
No. of workstations or no. of input units for each year (M),
M = [[ D*p +( D/Q)*s] product 1 + [D*p +( D/Q)*s] product 2 ] / N ( 1 - C/100), wher N = total no. of hours/year during which the process operates and C = capacity cushion 15 %
put values in this equation,
M= [ [ 5000*0.25+(5000/100) *2] touring + [10,000 *0.5 + (10,000/100) * 3] Mountain ] / [(50 * 5* 8) * ( 1- 15/100)]
= (1350 + 5300) / 1700
=3.91
M = 4
No. of workstations required next year = 4
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.