ITPEC IP October 2020 Question 70

One (1) piece of Product P consists of two (2) pieces of Part Q, and Part Q consists of four (4) pieces of Part R. When there is one (1) piece of Part Q and there are three (3) pieces of Part R in the inventory, how many more pieces of Part R are needed to produce six (6) pieces of Product P?

Explanation

41 pieces — explode the requirement level by level and subtract the stock at each level before going down to the next.

  • •Part Q needed: 6 × 2 = 12; 1 in stock, so make 12 − 1 = 11
  • •Part R for those: 11 × 4 = 44; 3 in stock
  • •Part R still needed: 44 − 3 = 41

Answer (a)

Why not others:

  • •(b) 44 — subtracts the stock of Q but forgets the 3 pieces of R in stock
  • •(c) 45 — subtracts the stock of R but forgets the piece of Q in stock, 12 × 4 − 3
  • •(d) 48 — the gross requirement, 6 × 2 × 4, ignoring both stocks

Key rule: In MRP, net requirement = gross requirement − stock of the same item, and a parent's net requirement (not its gross) is what drives the next level down.

Business Industry · AI-written, may contain errors

This question comes from an official ITPEC past paper. ITPEC Practice is an independent study tool and is not affiliated with ITPEC. See the official IP past-paper collection or Report an issue.