2. 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 project 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 .25 hour/unit .50 hour/lot Standard setup time 2 hours/lot 3 hours/lot The shop currently works 8 hours per day, 5 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 firms current capacity cushion?
The way to answer this question is ... View the full answer