The bill of material for end item A is shown below: a. If A has a gross requirem
ID: 470915 • Letter: T
Question
The bill of material for end item A is shown below:
a.
If A has a gross requirement to build 250 units and an on-hand inventory for A of 40, determine the net requirement for D if its current on-hand inventory balance for D is 20 (all other components have no current inventory).
b.
Determine the net requirement for F if the gross requirement for A is still 250 and current on-hand inventory balance for A is 40, D is 20 and F is 60.
a.
If A has a gross requirement to build 250 units and an on-hand inventory for A of 40, determine the net requirement for D if its current on-hand inventory balance for D is 20 (all other components have no current inventory).
b.
Determine the net requirement for F if the gross requirement for A is still 250 and current on-hand inventory balance for A is 40, D is 20 and F is 60.
The bill of material for end item A is shown below:Explanation / Answer
A has a gross requirement to build 250 units and on hand inventory = 40.
Hence, No.of A units to be produced = 250 - 40 = 210
For 210 units of A production we require 2 x 210 of B and 4 x 210 of C => 420 of B and 840 of C units
For Producing 420 of B and 840 of C units, we require 420 x 3 + 840 x 1 = 2100 units of D is required
Given current on-hand inventory balance for D is 20
Hence, net requirement for D is = 2100 - 20 = 2080 units of D
Given for 1 D we require 2 Fs .Hence for 840 units of D we require 840 x 2 = 1680 units of F
Given current on-hand inventory balance for F is 60 units
Hence, net requirement for F is =1680 - 60 = 1620 units of F is required.
Hence, 2080 units of D,1620 units of F is required
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