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Product X requires 1.8 kg of a raw material per finished unit. The material has a weight loss of 10% in preparation for manufacture. Inventory of the material is currently 420 kg but needs to be increased to 500 kg. 2,000 units of Product X are to be manufactured.
How many kg of the raw material needs to be purchased to satisfy the above requirements?
3,920
3,880
4,040
4,080If 2,000 units are produced the weight of material in these will be 2,000 x 1.8 = 3,600kg. However, this represents only 90% of the input weight as 10% is lost. Therefore, input weight needed to make production is 3,600/0.9 = 4,000. In addition, an extra 80kg must be in inventory. Therefore, purchases = 4,000 + 80 = 4,080.
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