ITPEC FE Morning April 2021 Question 71
ITPEC FE Morning April 2021 — Question 71 of 80
To find how many units of component C are needed to produce 10 units of product A, we "explode" the BOM:
BOM structure (per 1 unit of A):
- A requires: B(2) and C(1)
- Each B requires: D(1), E(1), and C(1)
Step 1 — Gross requirement of C per 1 unit of A:
- C directly under A: 1
- C through B: 2 × 1 = 2 (since A needs 2 B's, each B needs 1 C)
- Total per A: 1 + 2 = 3
Step 2 — Gross requirement for 10 units of A:
- 3 × 10 = 30
Step 3 — Subtract inventory on hand:
- 30 - 5 = 25
Why not others:
- (a) 15 — only counts C through B (2 × 1 × 10 = 20) minus 5, ignoring the direct C under A
- (b) 20 — counts only the C nested inside B (2 × 1 × 10 = 20) without subtracting inventory, or miscounts paths
- (d) 30 — correct gross requirement but forgets to subtract the 5 units already in inventory
Key rule: In MRP BOM explosion, a component can appear at multiple levels — sum ALL paths from the finished product to that component, then subtract existing inventory to get the net order quantity.
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