Question
A manufacturer produces two products of Alpha and Beta. The sales forecast for next year is as follows: Product Units Alpha 60,000 Beta 40,000 The
A manufacturer produces two products of Alpha and Beta. The sales forecast for next year is as follows:
Product Units
Alpha 60,000
Beta 40,000
The following materials are used to produce each product:
Amount used per unit
Direct material Alpha Beta
A 4 kilograms 5 kilograms
B 2 kilograms 3 kilograms
C - 1 unit
The expected inventories are as follows:
Product Expected 1 January Desired 31 December
Alpha 20,000 25,000
Beta 8,000 9,000
Raw material Expected inventories 1 January Desired inventories 31 December
A 31,766 kilograms 36,000 kilograms
B 29,000 kilograms 32,000 kilograms
C 6,000 units 7,000 units
What is the direct material purchase requirement for raw material A?
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