Question

Given the following bill-of-materials: One A requires 2 units of B, 3 units of C, and 1 unit of D. One B requires 1 unit of C and 1 unit of D. One C requires 1 unit of D and 2 units of E. One D requires 1 unit of F and 2 units of G. If the demand for product A is 50 units, what will be the gross requirement for component E?

Answer 1

In order to produce 1 unit of A, number of C required is 3

Therefore in order to produce 50 units of A, the number of C required would be 3*50

= 150

In order to produce 1 Units of A, the number of B required is 2

Therefore in order to produce 50 units if A, the number of B required as 2*50

= 100

In order to produce 1 Unit of B, the number of C required is 1

Therefore in order to produce 100 units of B, the number of C required would be 1*100

= 100

Total C required would be 150+100

= 250

In order to produce 1 Unit of C, the number of E required is 2

Therefore, in order to produce 250 Units of C, the number of E required would be 2*250

= 500

In order to produce 50 Units of A, the number of E required would be 500

Answer 2

Given BOM Structure:

1. 1 A requires:

• 2 B

• 3 C

• 1 D

2. 1 B requires:

• 1 C

• 1 D

3. 1 C requires:

• 1 D

• 2 E

4. 1 D requires:

• 1 F

• 2 G

(Note: E is only directly required by C.)

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Step-by-Step Calculation:

1. Requirements for 50 A:

• B: $50\text{A}\times 2\text{B/A}=100\text{B}$

• C: $50\text{A}\times 3\text{C/A}=150\text{C}$

• D: $50\text{A}\times 1\text{D/A}=50\text{D}$

2. Additional Requirements from 100 B:

• C: $100\text{B}\times 1\text{C/B}=100\text{C}$

• D: $100\text{B}\times 1\text{D/B}=100\text{D}$

3. Total C and D After B Breakdown:

• Total C: $150\text{(from A)}+100\text{(from B)}=250\text{C}$

• Total D: $50\text{(from A)}+100\text{(from B)}=150\text{D}$

4. Additional Requirements from 250 C:

• D: $250\text{C}\times 1\text{D/C}=250\text{D}$

• E: $250\text{C}\times 2\text{E/C}=500\text{E}$

5. Total D After C Breakdown:

• Total D: $150\text{(previous)}+250\text{(from C)}=400\text{D}$

(Note: D requires F and G, but these do not affect E.)

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Final Gross Requirement for E:

• Only C directly demands E, and we’ve already calculated:

  $$250\text{C}\times 2\text{E/C}=\boxed{{\displaystyle 500\text{E}}}$$

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Summary:

• E is only needed for C.

• Total C required = 250 (from A and B).

• Each C requires 2 E, so:

  $$250\times 2=500\text{E}$$

Answer: The gross requirement for component E is $\boxed{{\displaystyle 500}}$ units