Skip to content

CMA Intermediate · Operations Management and Strategic Management · Production Planning and Control

Product P needs 2 units of sub-assembly S, and each S needs 4 units of part T. For an order of 50 units of P, stock of S on hand is 30 units and stock of T on hand is 100 units, with no scheduled receipts. How many units of T must be ordered?

180 units of T must be ordered. Net S is 100 required less 30 in stock, giving 70. Those 70 units need 280 units of T, and after deducting the 100 units of T in stock, the net requirement is 180 units.

  1. A180 unitsCorrect
  2. B300 units
  3. C200 units
  4. D100 units

Explanation

Gross S = 50 x 2 = 100; net S = 100 - 30 = 70. Gross T = 70 x 4 = 280; net T = 280 - 100 = 180 units. Using gross S gives 400 - 100 = 300, which wrongly ignores the S stock netting at the parent level.

Did you get it right without looking?

One question tells you little. A timed set on Production Planning and Control shows your real accuracy, how long you take and where you lose marks.

Practise Production Planning and ControlFree diagnostic mock

More Production Planning and Control questions