Question

Consider the following product structure If the demand for product A is 30 units, and there are 10 units of B on hand and none of C,how many units of part D will be needed? O A) 3 O B) 70 C) 110 O D) 90 O E) 40

If the demand for product A is 30 units, and there are 10 units of B on hand and none of C,how many units of part D will be needed?
A) 3 
B) 70
C) 110
D) 90
E) 40
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Answer #1

Since 1 unit of B is required for 1 unit of A.

30 units of B will be required for 30 units of A

However 10 units of B are in stock

There fore net requirement of B = 30 – 10 = 20 units

2 units of D are required for each unit of B

Therefore , number of units of D required for 20 units of B = 20 x 2 = 40 units

1 unit of C is required for 1 unit of A and 1 unit of D is required for 1 unit of C

Therefore , 1 unit of D is required for 1 unit of A

Therefore , number of units of D required for 30 units of A = 30 units

Therefore, total number of D units required = 40 units + 30 units = 70 units

70 UNITS OF PART D WILL BE REQUIRED

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