CMA Intermediate · Operations Management and Strategic Management · Production Planning and Control
Ananya Appliances plans to assemble 200 units of a product in week 6. Each unit needs 3 units of component C. Stock on hand is 150 units and 100 units are scheduled to be received in week 4, with no other receipts or allocations. What is the net requirement of C for week 6?
The net requirement is 350 units. Gross requirement is 200 x 3 = 600 units of component C, from which the 150 units on hand and the 100 units scheduled receipt, totalling 250, are deducted, leaving 350 units to be ordered.
- A350 unitsCorrect
- B450 units
- C250 units
- D600 units
Explanation
Gross requirement = 200 x 3 = 600 units. Available = 150 on hand + 100 scheduled receipt = 250 units. Net requirement = 600 - 250 = 350 units. Option 250 wrongly gives the available stock, and 450 ignores the scheduled receipt.
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