Waec Model Questions Vol1 2019 Commerce Question 7
Practice objective / multiple choice question 7 from the 2019 Waec Model Questions Vol1 Commerce examination.
A retailer orders product X for its store. Annual demand for X is 12,000 units. The ordering cost per order is ₦5,000. The unit cost is ₦200 and the holding cost is 20% of the unit cost per year. The warehouse can hold at most 800 units at any time. There is no lead‑time and no stock‑out penalty. Determine the order quantity that minimises the total annual cost, respecting the warehouse capacity, and compute that minimum total cost.
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About This Question
This is Waec Model Questions Vol1 2019 Commerce Question 7. It is one of the objective questions from the 2019 Waec Model Questions Vol1 Commerce examination.
Difficulty level: Hard .
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