Answer:
total number of products to be produced to satisfy external demands are:
product 1 : 157.8 units
product 2 : 153 units
product 3 : 174.4 units
Explanation:
What is question is essentially looking for is for you to add the total units of producing each product to the external demand to get the total production units that will not affect external demand. Let us start by outlining the products and requirements clearly.
for 1 unit for products
product unit required for 1 unit
products 1 2 3
product 1. 0.20 0.15 0.10
product 2. 0.14 0.05 0.12
product 3. 0.14 0.08
If the amounts shown above are for the production of 1 unit each of the products 1, 2 and 3, therefor, to calculate the individual units required in production of total demand units, we will multiply the amounts required for the production of 1 unit by the number of demand units. hence:
product unit required for external demand units
product units 1 2 3
100 units of product 1 0.20×100 0.15×100 0.10×100
120 units of product 2 0.14×120 0.05×120 0.12×120
150 units of product 3 0.14×150 0.08×150
after the multiplication the unit required in the production are:
product unit required for external demand units
product units product 1 product 2 product 3
100 units of product 1 20 15 10
120 units of product 2 16.8 6 14.4
150 units of product 3 21 12
Next, let us add the individual units required for the production of external demand units:
product 1 : 20+16.8+21 = 57.8
Product 2 : 15+6+12 = 33
product 3 : 10 + 14.4 = 24.4
Finally Let us add the total units required in production to the total external demand units to get the total units to be produced that will not affect external demand:
product 1 : 100 + 57.8 = 157.8 units
product 2 : 120 + 33 = 153 units
product 3 : 150 + 24.4 = 174.4 units
When these extra units above demand units are produced, they will make up for the amount of units consumed during production.
