Railways NTPC (Technical Ability) Materials Science Question Bank Materials Science

  • question_answer
                 A furniture company is maintaining a constant work force which can produce 3000 tables per quarter. The annual demand is 12000 units and is distributed seasonally in accordance with the quarterly indexes \[{{Q}_{1}}=0.80,\] \[{{Q}_{2}}=1.40,\] \[{{Q}_{3}}=1.00\] and \[{{Q}_{4}}=0.80.\] Inventories are accumulated when demand is less than the capacity and are used up during periods of strong demand to supply the total demand. To take into account any seasonal demand the inventories on hand at the beginning of the first quarter should be at least:

    A) 0                                 

    B) 600

    C) 1200                            

    D) 2400

    Correct Answer: B

    Solution :

    Required inventory in the first quarter \[=0.8\times 3000=24000\] In the second quarter             \[=1.4\times 3000=4200\] In the third quarter             \[=1\times 3000=3000\] In the fourth quarter             \[=0.8\times 3000=2400\] Required quantity at the beginning of first quarter             \[3000-2400=600\]


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