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In the model \(S = Q - ut\), a stock out will occur when :

  • A.\(t = 0\)
  • B.\(t = u/Q\)
  • C.\(t = Q/u\)
  • D.\(Q = S\)

Answer: C

A stock-out occurs when \(t = Q/u\).

In \(S = Q - ut\), the stock starts at Q and is used at the constant rate \(u\). It runs out when \(S = 0\):

\[ Q - ut = 0 \Rightarrow t = \frac{Q}{u} \]

At \(t = 0\) the stock is full, \(u/Q\) inverts the ratio (it is the fraction of the order used per unit time), and \(Q = S\) holds only at \(t = 0\).

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