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    • Question

      If annual purchases = ₹240 lakh and lead time = 2

      months, how many LCs are needed in a year?
      A 4 Correct Answer Incorrect Answer
      B 6 Correct Answer Incorrect Answer
      C 12 Correct Answer Incorrect Answer
      D 24 Correct Answer Incorrect Answer
      E 2 Correct Answer Incorrect Answer

      Solution

      Each LC covers 2 months’ worth of purchases. So, 12 months / 2 months = 6 LCs required per year.

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