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

**Question 1:** If the forecasted 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 maximum production capacity is 300 units, then the unmet demand in week 3 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 =317 to 318 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 unmet demand will be 475-300=175. The correct option is (c).

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