Operations Management: Processes and Supply Chains, 12th Edition

Solved Problem 1

1. Refer to the bill of materials for product A shown in Figure 11.23.

   

   Figure 11.23 BOM for Product A

   Figure 11.23 Full Alternative Text

   If there is no existing inventory and no scheduled receipts, how many units of items G, E, and D must be purchased to produce five units of end item A?

Solution

1. Five units of item G, 30 units of item E, and 20 units of item D must be purchased to make five units of A. The usage quantities shown in Figure 11.23 indicate that two units of E are needed to make one unit of B and that three units of B are needed to make one unit of A; therefore, five units of A require 30 units of $\text{E }(2\times 3\times 5=30$