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 =720/360=2 units per day.
Explanation:
Average Daily Supply in EOQ=30/2=15 days
(1) For a 20-day shelf life, you can have up to 40 units (20 days \times 2 units per day). The EOQ of 30 units is acceptable.
(2) For a 10-day shelf life, you can have up to 20 units (10 days \times 2 units per day). The EOQ of 30 units is not acceptable as it exceeds the shelf life capacity.

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