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.Bike Demand Forecast Processing Time Lot Size (# of bikes) Setup Time (units/year) (minutes/unit) (minutes/setup)Tiny Tike 14,000 8 15 50Adult Aero16,000 10 18 80Mountain 19,000 12 25 40Mongera. Determine the total setup timeb. Determine the total operating time availablec. Determine the number of assembly lines

Answer 1

A.148,177.78

B.360,000 hours

C. 2.89

Step-by-step explanation:

A. Calculation to Determine the total setup time

Determine the total setup time for each of the three different types of bikes

Tiny Bike= (14,000/15)×50

=933.3333×50

=46,666.67

Adult Aero (16,000/18)×80

=888.889×50

=71,111.11

Mountain Monger (19,000/25)×40

=760×40

=304,00

Total Setup Time=

Tiny Bike 46,666.67+Adult Aero 71,111.11+Mountain Monger 30,400

Total Setup Time=148,177.78

Therefore the total setup time will be 148,177.78

b. Calculation to Determine the total operating time available

Total Operating Time=3×2,000×60

Total Operating Time=360,000 hours

Therefore the total operating time be 360,000 hours

c. Calculation to Determine the number of assembly lines

Number of assembly lines=(532,000+148,178)/360,000)+1

Number of assembly lines=(680,178/360,000)+1

Number of assembly lines=1.88938333+1

Number of assembly lines=2.89

Therefore the number of assembly lines will be 2.89