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Industry 4.0 · Quiz 2 · 23 Nov 2025 · September 2025 term

Question 13: If the cost of overstocking is less than the cost of und…

Question 13

+1 markOne or more correct options

Ramu puts up a stall for Diwali Light (Diya) every year. He builds a Diya at a cost of Rs. 1 and earns Rs.2 by selling each Diya. Any Diya not sold by Diwali will be discounted to 50 Paisa. From his experience, Ramu knows that the demand is Uniformly Distributed within [800, 1000] units. Then answer the given subquestions:

If the cost of overstocking is less than the cost of understocking, where will the optimal order quantity lies in the interval [800, 1000] units?

Select all that apply.

  1. A

    Toward left of the mean of uniform distribution [800,1000]

  2. B

    At the mean of uniform distribution [800,1000]

  3. C

    Towards right of the mean of uniform distribution [800,1000]

Show answer

Correct answer

  • C

    Towards right of the mean of uniform distribution [800,1000]

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Question 13 of 19 in the IIT Madras BS Industry 4.0 (Industry 4.0) Quiz 2 paper sat on 23 Nov 2025, in the September 2025 term (IIT M DEGREE AN EXAM QDB2 23 Nov 2025 NEW). It carries 1 mark.

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