To meet its orders a firm needs 120 units of R1 and 90 units of R2, but it has only 110 units of R1 and 100 units of R2. What follows?
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Hint
Check each raw material separately.
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Answer: D. R1 is short by 10 units, so the orders must be cut or more R1 bought
Compare need with stock for each material: R1 needs 120 but only 110 are available (10 short); R2 needs 90 and 100 are available (enough). One shortage is enough to stop the orders as they stand.