Question

Each widget manufactured requires three A's and one B. Each A requires four X's and two Y's. Each B requires two X's and three Z's. Inventory information is as follows: Item Lot Size On Hand Widget L4L 66 Mult. 50 223 B Mult. 100 37 X Mult. 1,000 448 Y Mult. 1,000 227 Z Mult. 2,500 975 Gross requirements for Widgets are 300.

Answer 1

Each widget requires three A’s and one B.

Each A requires four X’s and two Y’s.

Each B requires two X’s and three Z’s

Gross requirement for widgets = 300

On hand of widgets = 300 – 66 = 234………………. (i)

Each widget requires three A’s and one B

234 widget requires 702 A’s. On hand of A = 223. Net requirement = 702-223 = 479. But A can be ordered in multiples of 50. So ordered quantity = 500. ……………… (ii)

234 widget requires 234 B. On hand of B = 37. Net requirement = 234 – 37 = 197. But B can be ordered in multiples of 100. So ordered quantity = 200

Each A requires four X’s and each B requires two X’s

Total X required = 4*A ordered + 2*B ordered = 4*500 + 2*200 = 2400. On-hand of X = 448. So X has to be ordered. ………………… (iii)

Each A requires 2 Y’s. A required = 500. Y required = 1000. On-hand Y = 227. Hence Y has to be ordered. …………………. (iv)

Each B requires three Z’s. Total B required = 200. Hence total Z required = 600. On-hand Z = 975. Hence Z should not be ordered. ……………… (v)

Answers:

Question 70: TRUE (refer to (iii))

Question 71: TRUE (refer to (iv))

Question 72: FALSE (refer to (v))

Question 73: 234 (refer to (i))

Question 74: 500 (refer to (ii))

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