Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Entrepreneurial Opportunity

Question:

If demand for good X is 500 units per month and order lead time is one month. For how much quantity should the order be placed for stock or inventory, if producer also decided to add 100 units as safety stock.

Options:

500 units

1500 units

600 units

1800 units

Correct Answer:

600 units

Explanation:

The correct answer is option (3) - 600 units