Question

The following is a list of components required to produce one unit of end item P: P: 2 A's, 3 B's, 3 C's A: 5 M's, 2 R's B: 1 D, 3 N's. C: 1 T, 4 N's M: 1 N Determine the number of N's that will be needed to make 60 P's in each of these cases:

(a) There are currently 10 P's on hand.
(b) On-hand inventory consists of 15 P's, 10A's, 20 B's, 10 C's, 100 N's, 300 T's, and 200 M's.

Answer 1

To calculate the number of N's needed, the requirements for producing item P from components A, B, C, and M are tallied up, considering any on-hand inventory. Two scenarios are presented, altering the needed quantities based on available stock.

Step-by-step explanation:

The question involves calculations based on a bill of materials, which is common in manufacturing and inventory management. When calculating the number of N's needed to produce 60 units of item P, we must consider the direct usage of N's in the production of P, A, B, C, and M, as well as any on-hand inventory.

In case (a), where there are 10 units of P on hand, the number of P's to be produced is reduced to 50. For each unit of P, 3 B's and 3 C's are needed, and since one unit of B requires 3 N's and one unit of C requires 4 N's plus M, which also requires 1 N, we can calculate the total N's required for B's, C's, and M's for the production of 50 P's.

For case (b), we need to consider the existing inventory of 15 P's, 10 A's, 20 B's, 10 C's, and 100 N's, among other items. We must adjust our calculations based on these on-hand quantities, which reduce the overall requirement of additional N's.

In conclusion, understanding the calculation of materials needed by using a conversion factor, similar to units of specific number of items, is integral to determining the exact count of N's needed for the production of a specified number of item P's.