Question: c . For shelf life considerations: Average Daily Demand = Annual demand / Number of days in a year = 7 2 0 / 3
c For shelf life considerations:
Average Daily Demand Annual demand Number of days in a year units per day.
Explanation:
Average Daily Supply in EOQ days
For a day shelf life, you can have up to units days times units per day The EOQ of units is acceptable.
For a day shelf life, you can have up to units days times units per day The EOQ of units is not acceptable as it exceeds the shelf life capacity.
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