Tuff-Rider, Inc., manufactures touring bikes and mountainbikes in a variety of frame sizes, colors, and component com-binations. Identical bicycles are produced in lots of 100. Theprojected demand, lot size, and time standards are shown inthe following table: Item Touring MountainDemand forecast 5,000 units/year 10,000 units/yearLot size 100 units 100 unitsStandard processing time .25 hour/unit .50 hour/unitStandard setup time 2 hours/lot 3 hours/lot The shop currently works 8 hours a day, 5 days a week,50 weeks a year. It operates five workstations, each producingone bicycle in the time shown in the table. The shop main-tains a 15 percent capacity cushion. How many workstationswill be required next year to meet expected demand withoutusing overtime and without decreasing the firm’s currentcapacity cushion?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter12: Queueing Models
Section: Chapter Questions
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Tuff-Rider, Inc., manufactures touring bikes and mountain
bikes in a variety of frame sizes, colors, and component com-
binations. 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 .25 hour/unit .50 hour/unit
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. It operates five workstations, each producing
one bicycle in the time shown in the table. The shop main-
tains 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?

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