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Tuff-Rider, Inc., manufactures touring bikes and mountain bikes in a variety of

ID: 431125 • 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

12,000

?units/year

Lot size

90

units

100

units

Standard processing time

0.20

?hour/unit

0.75

?hour/unit

Standard setup time

2? hours/lot

3? hours/lot

The shop currently works 8 hours a? day, 5 days a? week,52 weeks a year. It operates five? 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?

The number of workstations required next year is _______.

?(Enter

your response rounded up to the next whole

number.?)

Item

Touring

Mountain

Demand forecast

5,000

Explanation / Answer

Total set up time for touring bicycle

= Demand/Lot size   x Standard set up time

= 5000/100 x 2

= 100 hour

Total set up time for Mountain bicycle

= Demand / Lot size   x Standard set up time

= 12000/90 x 3

= 400 hour

Cumulative set up time required in a year = 100 + 400 = 500 hours

Total processing time for Touring bicycle = 5000 x 0.75 hours = 3750 hours

Total processing time for Mountain bicycle = 12000 x 0.20 = 2400 hours

Cumulative processing time required in a year = 3750 + 2400 = 6150 hours

Thus,

Cumulative set up time plus processing time required in a year = 500 + 6150 = 6650 hours

Gross available hours per workstation = 8 hours/day x 5 days/ week x 52 weeks/ year = 2080 hours

Since there is capacity cushion of 15 percent,

Effective available working hours per workstation = 0.85 x 2080 = 1768

Therefore , number of workstations required next year

= Cumulative set up plus processing time required in a year/ Effective available working hours per workstation

= 6650 /1768

= 3.76 ( 4 rounded to next higher whole number )

NUMBER OF WORKSTATIONS REQUIRED NEXT YEAR =4

NUMBER OF WORKSTATIONS REQUIRED NEXT YEAR =4

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