Direction for question: Go through the table given below and solve the questions based on it.

The XYZ manufacturing company produces a product which has 6 month demand cycle as given below:

Month

Demand in Units

Working days/month

January

600

22

February

1000

19

March

800

21

April

200

21

May

400

22

June

600

2

Company's policy is to retain safety stock of 20% of monthly demand and each month's safety stock becomes the opening stock for the next month, and opening stock for January is 100 units. Each unit requires 10 labour-hours and company works 8 hour/day.

What is the opening stock for June?

Option 1 - <p>40</p>
Option 2 - <p>80</p>
Option 3 - <p>60</p>
Option 4 - <p>100</p>
1 Views|Posted 7 months ago
Asked by Shiksha User
1 Answer
P
7 months ago
Correct Option - 2
Detailed Solution:

Month

Opening

Demand

Resource 20%

Production

Working days

January

100

600

120

620

22

February

120

1000

200

1080

19

March

200

800

160

760

21

April

160

200

40

80

21

May

40

400

80

440

22

June

80

600

120

640

20

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