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What should be the minimum stock at the ...


What should be the minimum stock at the beginnings of June, if the company has to supply smoothly for allt ehfive months ?

A

45 units

B

35 units

C

25 units

D

None of these

Text Solution

Verified by Experts

Stock at the beginnig of
June =75 units
July =75-(350-300)=75-50=25 units
August = 25-(275-250)=25-25=0
September =200175=25 units
October = 25-(135-300)=50 units
November =25+(325-300)=50 units
From the above calculation, we ge the following table.
`{:("Months","Quantity Produced","Quantity sold","Stock of the begining"),("June",300,350,75),("July",250,275,25),("August",200,175,0),("September",200,200,25),("October",325,300,25):}`
Required minimum stock sjhould be 75 units. If we had the stock at the beginning less than 75 units, the company would bot have been to supply in August.
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