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Conversion of Units

End item A ha...

Question

End item A has a BOM as shown below, where the numbers are amounts required. There are 25 units of B and 900 units of H in stock. What net requirement of H is needed to supply 300 units of A?

A

2100

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B

3700

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C

2800

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D

1500

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Solution

The correct option is C 2800
Gross requirement of H = $2 \times 4 \times 300 + 5 \times 300 = 3900 u n i t s$
H assembled already in B = $2 \times 4 \times 25 = 200$
H in stock = 900
So net requirement of H = 3900-200-900=2800

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