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Entrepreneurship · 2024 · 1 mark

CBSE 2024 · Central · Set 4 · Q7

Raghuram has been appointed as the stock incharge in a readymade shirt manufacturing company. The Production Manager asks Raghuram to ensure the…

Raghuram has been appointed as the stock incharge in a readymade shirt manufacturing company. The Production Manager asks Raghuram to ensure the availability of fabric without any interruption so that there is no stock-out situation. For this Raghuram wants to know the re-order point of fabric for the company, that is to determine when to place an order. For this he found out the procurement lead time, which is $\displaystyle 2$ months, and the demand during this period, which is expected to be $\displaystyle 300$ bales of cotton fabric per month. So the order should be placed when the stock reaches :
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