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

45 units

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35 units

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25 units

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30 units

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None of these

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Solution

The correct option is E None of these
Stock at the beginning of
June = 75 units
July = 75 - (350 - 300) = 75 - 50 = 25 units
August = 25 - (275 - 250) = 25 - 25 = 0 unit
September = 200 - 175 = 25 units
October = 25 - (325 - 300) = 50 units
November = 25 + (325 - 300) = 50 units
From the above calculation, we get the following table
$\begin{matrix} M o n t h s & Q u a n t i t y & Q u a n t i t y s o l d & S t o c k o f P r o d u c e d & s o l d & t h e b e g i n n i n g J u n e & 300 & 350 & 75 J u l y & 250 & 275 & 25 A u g u s t & 200 & 175 & 0 S e p t e m b e r & 200 & 200 & 25 O c t o b e r & 325 & 300 & 25 \end{matrix}$
Required minimum stock should be 75 units. If we had the stock at the beginnings less than 75 units, the company would not have been able to supply in August.

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