Go Green Bikes Capacity Forecasting

Go Green Bikes is evaluating the need to adjust their capacity to meet projected demand in the coming decade. The following information is available about the probability of possible annual demand 3, 6, and 9 years from now.

Possible Demand	+3 years	+6 years	+9 years
35,000	0.30	0.20	0.15
40,000	0.25	0.30	0.20
45,000	0.15	0.20	0.30
50,000	0.15	0.15	0.20
55,000	0.15	0.15	0.15

What is the expected demand for each time period?

If Go Green Bikes targets a 5% capacity cushion for the year with the highest expected demand, how much capacity is needed? Round your answer to the nearest thousand bikes per year.

Assume that Go Green Bikes operates 8 hours/day, 5 days/week, and 50 weeks/year. Using the capacity you calculated in the process analysis section above, how much does Go Green need to increase or decrease capacity to meet the objective from the capacity forecasting problem?

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What is a change (or group of changes) that Go Green Bikes could make to their existing process to meet the needed capacity? Why would this change have the needed effect?