Question

Semans is a manufacturer that produces bracket assemblies. Demand for bracket assemblies (X) is 127 units. The following is the BOM in indented form:

ITEM DESCRIPTION USAGE
X Bracket assembly 1
A Wall board 5
B Hanger subassembly 2
D Hanger casting 3
E Ceramic knob 2
C Rivet head screw 3
F Metal tong 4
G Plastic cap 1
Below is a table indicating current inventory levels:



Item X A B C D E F G
Inventory 27 19 74 23 201 262 975 100


b. What are the net requirements for each item? (Leave no cells blank - be certain to enter "0" wherever required.)



Item Net Requirements
X
A
B
C
D
E
F
G

Answer 1

The net requirements for each item in the BOM have been calculated by subtracting the current inventory level from the demand for each item. The net requirements are as follows: X = 100 units, A = 108 units, B = 53 units, C = 104 units, D = 0 units, E = 0 units, F = 0 units, G = 27 units.

Step-by-step explanation:

To calculate the net requirements for each item, we need to subtract the current inventory level from the demand for each item. Let's go item by item:

X (Bracket assembly): Net Requirement = Demand - Inventory = 127 - 27 = 100 units

A (Wall board): Net Requirement = Demand - Inventory = 127 - 19 = 108 units

B (Hanger subassembly): Net Requirement = Demand - Inventory = 127 - 74 = 53 units

C (Rivet head screw): Net Requirement = Demand - Inventory = 127 - 23 = 104 units

D (Hanger casting): Net Requirement = Demand - Inventory = 127 - 201 = -74 units (No additional requirement, as there is excess inventory)

E (Ceramic knob): Net Requirement = Demand - Inventory = 127 - 262 = -135 units (No additional requirement, as there is excess inventory)

F (Metal tong): Net Requirement = Demand - Inventory = 127 - 975 = -848 units (No additional requirement, as there is excess inventory)

G (Plastic cap): Net Requirement = Demand - Inventory = 127 - 100 = 27 units

Answer 2

Answer and Explanation:

The computation of net requirements for each item is shown below:-

Net requirement = Gross requirement - Inventory

To compute the Gross requirement we will use the following formulas:

A = 5 × Net requirement of X

= 5 × 127

= 635

B = 2 × Net requirement of X

= 2 × 127

= 254

C = 3 × Net requirement of X

= 3 × 127

= 381

D = 3 × Net requirement of B

= 3 × 180

= 540

E = 2 × Net requirement of B

= 2 × 180

= 360

F = 4 × Net requirement of C

= 4 × 358

= 1,432

G = 1 × Net requirement of C

= 1 × 358

= 358

Item Gross Requirement Inventory Net Requirement

X 127 1 127

A 635 19 616

B 254 74 180

C 381 23 358

D 540 201 339

E 360 262 98

F 1,432 975 457

G 358 100 258

Therefore we have applied the net requirement formula.