Direction for the question : Study the following graph which shows the demand forecast for the next ten weeks.

Question 1: If the foretasted demand is met by having uniform production during the weeks at an average level, then the number of weeks during which demand will not be met is:
(a) 2
(b) 3
(c) 6
(d) None of these

Question 2: If the production is uniform, then what should be the minimum capacity of the storage space to store the units in excess of demand?
(a) 25
(b) 50
(c) 100
(d) 180

Question 3: If the maximum production capacity is 300 units, then the unmet demand in week 4 will be:
(a) 225
(b) 275
(c) 175
(d) All the demand will be met

Answers and Explanations

Answer 1: (c) The average demand = (350+50+475+335+400+275+300+350+325)/9 =320 to 322 approximately Any week for which demand is more than this number, the production will not able to meet the demand. There 6 such weeks. The correct option is (c).

Answer 2: (d) The required capacity for units in excess demand > 475-320=150 The correct option is (d)

Answer 3: (d) The unmet demand will be 475-300=175 The correct option is (c).

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