ITPEC FE Morning April 2021 Question 71
The figure below shows the relationships among the components of product A, and the numbers in parentheses indicate the quantity of components necessary to produce one unit of the upper-level product or component. When 10 units of product A are produced, how many units of component C must be ordered? Here, there are presently five units of component C in the inventory.
Explanation
25 units — explode the bill of materials, sum every path to C, then subtract the stock on hand.
- •C directly under A: 1 per A
- •C through B: A needs 2 B and each B needs 1 C, so 2 × 1 = 2 per A
- •C per unit of A: 1 + 2 = 3
- •Gross requirement for 10 units of A: 3 × 10 = 30
- •Net order quantity: 30 − 5 = 25
Answer (c)
Why not others:
- •(a) 15 — counts only 2 C per A, either by dropping the quantity (2) of B, 1 + 1, or by missing the C directly under A: 20 − 5 = 15
- •(b) 20 — the same 2 C per A without subtracting the inventory
- •(d) 30 — the gross requirement; it forgets the 5 units already in inventory
Key rule: In MRP, multiply quantities down each branch, add every branch that reaches the part, and order only the gross requirement minus the inventory on hand.
Business Industry · AI-written, may contain errors
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