Best’s Bicycles manufactures three different types of bikes: the Tiny Tike, the
ID: 411607 • 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.
Processing time
(minutes/unit)
Lot size
(# of bikes)
Setup Time
(minutes/ setup)
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 40Explanation / Answer
A. Total setup time = (Demand forecast of each bike type / Lot size ) * Time per setup
= (14000/15)*50 + (16000/18)*80 + (19000/25)*40
= 148,178 minutes
B. Total operating time available = Number of shifts * Time per shift per year = 3*2000 = 6000 hours = 360,000 minutes
C. Total processing time = 14000*8 + 16000*10 + 19000*12 = 500,000 minutes
Total work load = Total setup time + Total processing time = 148178 + 500000 = 648178 minutes
Number of assembly lines required = Total work load / Total available time = 648178/360000 = 1.8 ~ 2
Number of assembly lines = 2
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