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In the inventory model \(S = Q - u.t\) with \(Q = 1000\), \(u = 40\) and \(t = 10\), the current stock level is :

  • A.400
  • B.1200
  • C.1000
  • D.600

Answer: D

The current stock level is 600.

In this model Q is the stock at the start, \(u\) the rate of usage per unit time and \(t\) the time elapsed, so the stock remaining is

\[ S = Q - ut = 1000 - 40 \times 10 = 600 \]

400 is the quantity used, not the stock left; 1000 ignores the usage, and 1200 adds the usage instead of subtracting it.

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