ITPEC IP October 2024 Question 91
A single unit of Product A is composed of three (3) pieces of Part B and two (2) pieces of Part C. In the production plan for a particular period, when the demand for Product A is 10, which of the following is the net requirement of Part B? Here, the quantity in stock is five (5) for Part B, and there are no other pieces in stock, in process, on back order, or already allocated. The net requirement is calculated by subtracting the stock available for allocation from the gross requirement.
Explanation
25 pieces — the gross requirement for Part B minus the stock of Part B.
- •Gross requirement of B: each Product A uses 3 pieces, so 10 × 3 = 30
- •Stock of B available for allocation: 5
- •Net requirement of B: 30 − 5 = 25
Part C (2 per product) plays no part in the calculation for Part B.
Answer (b)
Why not others:
- •(a) 20 — is the gross requirement of Part C, 10 × 2, not of Part B
- •(c) 30 — is the gross requirement of Part B before the 5 in stock are subtracted
- •(d) 45 — adds Part C's requirement to Part B's, 30 + 20 − 5, mixing two different parts
Key rule: In MRP, compute each part separately: gross requirement = parent quantity × usage per parent, and net requirement = gross requirement − available stock of that same part.
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.