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Turf-Rider, Inc., manufactures touring bikes and mountain bikes in a variety of frame sizes, colors, and component combinations. Identical bicycles are always produced at
Turf-Rider, Inc., manufactures touring bikes and mountain bikes in a variety of frame sizes, colors, and component combinations. Identical bicycles are always produced at a batch size of 100 units. The projected demand, batch size, and time standards for each workstation are shown in the table below. Item Demand forecast Batch size Standard processing time Standard setup time Touring Bikes 5000 units/year 100 units 0.25 hours/unit/workstation 2.0 hours/batch/station Mountain Bikes 10000 units/year 100 units 0.5 hours/unit/workstation 3.0 hours/batch/station The shop currently works eight hours a day, five days a week, 50 weeks a year. It needs to decide at least how many workstations to procure so that they can meet the expected demand without using overtime. Assume that workstations work in parallel (which implies that each bicycle only needs to be worked by one workstation), and each workstation can produce one bicycle in the time shown in the table. Also assume that the stations need to be setup before producing a batch of either bike model. However, if the workstation cannot complete the production of the whole batch of one bike model by the end of the day, due to the eight hours a day limit, it can continue to finish the batch the next day without re-setup. Similarly, if the setup of a workstation cannot be completed by the end of day, due to the eight hours a day limit, the setup can be continued the next day. Assuming the workstations are 100% utilized after setup, determine the least number of workstations needed to meet the estimated demand.
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