ITPEC IP October 2020 Question 70

Source exam: ITPEC IP October 2020Topic: Business Industry

ITPEC IP October 2020 — Question 70 of 100

An additional 41 pieces of Part R are required. Six products P need 6 × 2 = 12 pieces of Q. One Q is already in inventory, leaving 11 Q to make. Each needs four R, so production requires 11 × 4 = 44 R; subtracting the three R in inventory gives 44 − 3 = 41.

Answer (a)

Why not others:
- 44 is the gross R requirement before using existing R inventory

- 45 and 48 fail to account correctly for the existing Q and R

Key rule: Explode the bill of materials level by level, subtract usable inventory at the relevant level, then calculate the net lower-level requirement.

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