ITPEC IP April 2018 Question 87
ITPEC IP April 2018 — Question 87 of 100
The net requirement for Part B is 25 pieces. Ten units of Product A require 10 x 3 = 30 pieces of B as the gross requirement. Subtracting the five pieces already available gives 30 - 5 = 25. Part C does not affect the requirement for B.
Answer (b)
Why not others:
- 20 incorrectly uses the requirement for Part C
- 30 is the gross requirement before available stock is deducted
- 45 adds rather than subtracts the existing five pieces
Key rule: Net requirement equals gross component requirement minus inventory and other quantities available for allocation.
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