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?
A)3
B)40
C)70
D)90
E)110

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?
A)3 
B)40 
C)70 
D)90 
E)110

Quizplus · Accepted Answer

From the given product structure, we can see that to produce 1 unit of A, we need 3 units of B, 2 units of C, and 7 units of D. 
Given that the demand for A is 30 units, we would need 30*3=90 units of B and 30*2=60 units of C. However, we are given that there are only 10 units of B on hand and none of C. Therefore, we would need to produce 90-10=80 units of B and 60 units of C. 
Now, for 80 units of B, we would need 80*2=160 units of D (since we need 2 units of D per unit of B), and for 60 units of C, we would need 60*4=240 units of D (since we need 4 units of D per unit of C). 
Thus, the total number of units of D required would be 160+240 = 400. However, we have to keep in mind that the product structure is given in a hierarchical manner, implying that 1 unit of TB2903_00 is made up of a certain number of units of D. Therefore, we would need to find out how many units of D are required to produce 1 unit of TB2903_00, and then multiply that by the number of TB2903_00 units required to produce 30 units of A. 
From the product structure, we can see that to produce 1 unit of TB2903_00, we need 5 units of D. Therefore, to produce 30 units of A, we would need 30 units of TB2903_00, which in turn would require 30*5=150 units of D. 
Adding the D units needed for B and C production to the D units needed for producing the required number of TB2903_00 units, we get a total of 400+150=550 units of D required. Therefore, the answer is C) 70.

Consider the Following Product Structure