Given the following bill of material 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) 40
C) 70
D) 90
E) 110

Question

Given the following bill of material  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) 40 
C) 70 
D) 90 
E) 110

Quizplus · Accepted Answer

To determine how many units of part D are needed, we need to use the bill of material provided.

Product A requires 2 units of B and 3 units of C. Therefore, to produce 30 units of A, we need 60 units of B (2 x 30) and 90 units of C (3 x 30).

Part D is used in the production of B and C. Specifically, each unit of B requires 1 unit of D and each unit of C requires 2 units of D.

Since we have 10 units of B on hand, we need 50 more units of B (60 - 10) which will require 50 units of D.

Since we have no units of C on hand and need 90 units of C for the production of 30 units of A, we will need 180 units of D (90 x 2).

The total number of units of D needed is therefore 50 + 180 = 230.

Given the Following Bill of Material If the Demand