QUESTION $5(20$ MARKS$)$

You are newly employed by Shoprite in your area as a supply chain specialist. Shoprite wants to measure the impact

of its customer on the business at large. Use the simple Method to calculate the Customer Lifetime Value $($CVL$)$ of

Shoprite$$s products using the following data $($Include practical examples and analysis of the final results$)$:

Total Revenue R$120,000,000$

Total Number of Customers $8,000,000$

Total Number of Orders R$2,500,000($Total Revenue$)$

Average Order Frequency $($AOF$)10$

Average Customer Lifespan $($ACL$)8$ years