Question: Given the following information concerning non - instantaneous replenishment ( POQ ) : Mountain Nectar Brewing Company produces an India pale ale which it stores
Given the following information concerning noninstantaneous replenishment POQ:
Mountain Nectar Brewing Company produces an India pale ale which it stores in barrels in its warehouse and supplies to distributors on demand. The demand for India pale ale is barrels per day and the company can produce barrels per day. It costs $ to set up a production run of India pale ale. Once brewed, the ale is stored in their refrigerated warehouse at an annual cost of $ per barrel. Mountain Nectar Brewing Company operates days per year to calculate annual demand
Which statement below best describes the relationship between daily production and daily demand?
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