Question

Product A is assembled from 3 components: E (4 units needed to make one unit of A), H (10 units), and B (1 unit). B is made of D (10 units) and C (5 units). D is made of H (20 units). C is made of H (10 units). Currently 25 units of B and 6000 units of H are in stock. For requirement of 450 units of A, what is the requirement of H?

a. 117,000
b. 104,750
c. 111,000
d. 110,975

Answer 1

To calculate the requirement of H for the production of 450 units of A, we need to consider the inputs required for A, B, C, and D in terms of units of H. After calculating the total units of H required for one unit of each component and multiplying by the number of A units needed, we subtract the H already in stock. The result is 111,000 units of H.

Step-by-step explanation:

To solve for the requirement of H for the production of 450 units of A, we must first understand the quantity of each component needed for product A, as well as the sub-components for B, D, and C -- as these also require H. We can set up the calculation as follows:

1. Each unit of A requires 10 units of H directly.
2. Additionally, A requires 4 units of E (each unit of E is presumed not to require H, as it isn't stated in the question).
3. A also needs 1 unit of B, which in turn is made of 10 units of D and 5 of C.
4. D is made of 20 units of H and C is made of 10 units of H.
5. Therefore, one unit of B requires (10 units of D * 20 units of H) + (5 units of C * 10 units of H) = 200 + 50 = 250 units of H.
6. To make 450 units of A, you'll need 450 * (10 + 1*250) units of H minus the units of H already in stock (6000 units).
7. So, the requirement of H is 450 * (10 + 250) - 6000 = 450 * 260 - 6000 = 117000 - 6000.

After performing the calculation:

117,000 - 6,000 = 111,000

Therefore, the requirement of H is 111,000 units, making the correct answer option c.