Waec Model Questions Vol1 2022 Commerce Question 10

Practice objective / multiple choice question 10 from the 2022 Waec Model Questions Vol1 Commerce examination.

Waec Model Questions Vol1 2022 Commerce Objective / Multiple Choice Medium Difficulty
Question 10 WAEC_MODEL_QUESTIONS_VOL1 • 2022 • COMMERCE • objective

A retail store experiences an average daily demand of 45 units for a certain product. Daily demand is normally distributed with a standard deviation of 8 units. The supplier's lead time is 5 days. The store wishes to maintain a 95 % service level (i.e., a 95 % probability of no stock‑out during the lead time). Using a Z‑value of 1.65 for a 95 % service level, what should be the reorder point (in units) for this product?

Answer Options

Correct Answer A. 255
B. 270
C. 260
D. 245
Correct Answer
A
Correct Option:
255

About This Question

This is Waec Model Questions Vol1 2022 Commerce Question 10. It is one of the objective questions from the 2022 Waec Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

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