(a) Consider the product structure shown below. Assuming 1 A is to be made, how many units of each of the other items would need to be made?

(b) If there are 20 of every item except A in on-hand inventory, how many As can be assembled?

What will be an ideal response?

(a) Item B: 1, Item C: 3, Item E: 3, Item D: 23 . + 41. = 10 , Item F: 23 . + 10 = 16
(b) To find how many As can be constructed, first consume all Bs and Cs to make 6As with 14 Bs left and 2Cs. Thus more Cs are needed. Consume 20 Ds and 10 Es to make 10 additional Cs. Thus there are now 12 Cs and 14 Bs on hand, use these to produce 4 more As. This leaves 10 Bs, 20 Fs, and 10Es. Since no more Cs can be constructed, no more As can be constructed. Thus the maximum number of As that can be assembled is 6 + 4 = 10.

Business

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