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 bikes 6940 units/year Lot size 100 units Standard processing 0.25 hour/unit time Standard setup time 2 hours/lot Demand forecast Mountain bikes 6990 units/year 100 units 0.50 hour/unit 3 hours/lot The shop currently works 8 hours a day, 5 days a week, 50 weeks a year. If the shop maintains a 15 percent capacity cushion, how many workstations will be required next year to meet expected demand without using overtime?

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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 bikes
Mountain bikes
Demand forecast
6940 units/year
6990 units/year
Lot size
100 units
100 units
0.50 hour/unit
Standard processing 0.25 hour/unit
time
Standard setup time 2 hours/lot
3 hours/lot
The shop currently works 8 hours a day, 5 days a week, 50 weeks a year.
If the shop maintains a 15 percent capacity cushion, how many
workstations will be required next year to meet expected demand without
using overtime?
Transcribed Image Text: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 bikes Mountain bikes Demand forecast 6940 units/year 6990 units/year Lot size 100 units 100 units 0.50 hour/unit Standard processing 0.25 hour/unit time Standard setup time 2 hours/lot 3 hours/lot The shop currently works 8 hours a day, 5 days a week, 50 weeks a year. If the shop maintains a 15 percent capacity cushion, how many workstations will be required next year to meet expected demand without using overtime?
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