Question

A crockery company makes china cups and saucers. How much clay would they need to buy if: - a cup uses 100 g of clay - a saucer uses 150 g of clay - it plans to make 450,000 cups and 280,000 saucers - there is no opening inventory - it would like to have closing inventories of 4,000 g of clay?

Answer 1

Clay required = [(0.1 kg * 450,000) + (0.15 kg * 280,000) + 4,000 kg] = 91,000 kg

Particulars   Clay required   (in grams)   (in kg)     
Cups   450,000 cups * 100 gm   45,000,000   45,000      
Saucer   280,000 saucers * 150 gm   42,000,000   42,000      
Closing stock required       4,000,000   4,000      
           91,000