The MPS calls for 110 units of Product A. There are currently 60 of Product A on hand. Each A requires 4 of Part B. There are 20 units of B available. The net requirements for B are
A) 20
B) 120
C) 180
D) 240
E) 440

Question

Quizplus · Accepted Answer

To calculate the net requirements for Part B, we need to use the following formula: 
Net requirements = Gross requirements - Available inventory

The gross requirements of Part B can be found by multiplying the units of Product A required (110) by the amount of Part B per unit of A (4).

Gross requirements for B = 110 x 4 = 440

The available inventory for B is given as 20.

Net requirements for B = Gross requirements - Available inventory
= 440 - 20
= 420

Therefore, the correct answer is C (180).

The MPS Calls for 110 Units of Product A