Answer :
The surplus of 120,000 will help meet the demand, resulting in no shortage.
- In the given options, the surplus of 120,000 indicates an excess supply, which means there is more than enough to meet the demand. Consequently, there won't be a shortage as the surplus can cover the required quantity. This surplus acts as a buffer and ensures that the demand can be satisfied without any shortfall. It provides a sense of security and stability in the supply chain, allowing for uninterrupted availability of the product or resource.
- Surpluses are beneficial in various scenarios, such as preventing disruptions in critical industries, meeting unexpected spikes in demand, or serving as a contingency plan for unforeseen circumstances. They provide a cushion against unexpected events and fluctuations in supply and demand. However, it is essential to manage surpluses effectively to avoid wastage and financial losses.
- Having a surplus of 120,000 signifies a favorable position, where the supply exceeds the demand by a considerable margin. This allows for flexibility in the market, enabling businesses to adjust their strategies accordingly. It can also lead to potential cost savings if the surplus can be stored or utilized efficiently in the future.
- Overall, the surplus of 120,000 eliminates the possibility of a shortage, ensuring a stable and balanced supply. It reflects a proactive approach to meet demand and showcases effective inventory management practices.
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