Question: To calculate the net requirements for Castings and Knobs, we need to consider the demand for Complete Assemblies ( X ) and the quantities required

To calculate the net requirements for Castings and Knobs, we need to consider the demand for Complete Assemblies (X) and the quantities required for each item in the Bill of Materials (BoM).
Given that the demand for Complete Assemblies (X) is 137 units, let's calculate the requirements for each component:
For Castings (D):
Each Complete Assembly requires 2 Castings.
So, total requirements for Castings =137*2=274 units.
For Knobs (E):
Each Complete Assembly requires 1 Knob.
So, total requirements for Knobs =137*1=137 units.
Now, let's subtract the current inventory levels from the total requirements to find the net requirements:
For Castings (D):
Net requirements = Total requirements - Current inventory
Net requirements =274-200=74 units.
For Knobs (E):
Net requirements = Total requirements - Current inventory
Net requirements =137-149=-12 units.
However, since we can't have a negative net requirement, we consider it as 0.
So, the correct answer is:
Castings 74; Knobs 0.
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