Aroma Beverages Ltd. is a growing beverage company that produces and sells four varieties of tea-based drinks. The company operates across major…

Aroma Beverages Ltd. is a growing beverage company that produces and sells four varieties of tea-based drinks. The company operates across major cities and experiences strong seasonal fluctuations in demand. The management closely monitors quarterly sales trends to plan production and inventory levels effectively. The sales quantity and selling price for the month of September 2024 are given below: Product Sales Quantity Selling Price per unit (₹) Classic Tea 1,40,000 units 20 Iced Tea 3,40,000 units 40 Herbal Infusion 4,20,000 units 20 Sparkling Tea 2,70,000 units 20 During the quarter October to December 2024, the company expects significant changes in demand due to seasonal weather variations, consumer preferences, and a marketing campaign launched for its flagship product, Classic Tea. Based on market forecasts and internal analysis, the following estimates are made: The demand for Classic Tea will increase by 50% every month compared to the previous month, owing to cooler weather and the ongoing marketing campaign.The demand for Iced Tea will decrease by 30% each month as the weather cools down.The demand for Herbal Infusion will fall by 20% in October 2024 due to new competition but will remain constant thereafter.Due to a limited production capacity and distributor commitments, sales of Sparkling Tea will be restricted to 60,000 units in October, 50,000 units in November, and 30,000 units in December 2024. There will be no change in the selling prices of the products during the quarter. The standard quantity of closing stock from September 2024 to December 2024 is as follows: Month Classic Tea Iced Tea Herbal Infusion Sparkling Tea September 2024 12,000 13,000 11,000 7,500 October 2024 15,000 14,000 12,000 5,500 November 2024 13,000 15,000 10,000 6,000 December 2024 11,000 16,000 13,000 7,000 Additionally, the company plans to maintain sufficient stock levels to meet holiday season demand in December while ensuring that excess production is minimized due to limited storage capacity.