Tuft 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:

The shop currently works 8 hours a day, 5 days a week, 50 weeks a year. It operates five work stations, 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?

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Item Demand forecast Lot size Standard processing time Standard setup time TouringMountain 5,000 units/year 10,000 units/year 100 units 25 hour/unit 2 hourslot 100 units 50 hour/unit 3 hours/lot