Question

An order for 50 units of product a and 60 of b has been placed. there are currently 25 units of product b on hand. each a requires 2 units of part c; each b requires 5 units of

c. there are 160 units of c available. what are the net requirements for c?

Answer 1

To determine the net requirement for c, we determine first the number of c’s that are required for the production of a and b given that there are already 25 units of b available.

Number of c needed = (50 units of a)(2 c/unit of a) + (60 – 25 units of b)(5 c/unit of b)

Number of c needed = 275 c’s

There are currently 160 units of c; hence,

Net requirement for c = 275 c – 160 c

Net requirement for c = 115

Answer: 115