Post Utme Skyline University 2023 Commerce Question 22

Practice objective / multiple choice question 22 from the 2023 Post Utme Skyline University Commerce examination.

Post Utme Skyline University 2023 Commerce Objective / Multiple Choice
Question 22 POST_UTME_SKYLINE_UNIVERSITY • 2023 • COMMERCE • objective

A company has a warehouse with a capacity to store 1000 units of goods. The company receives a shipment of 800 units of goods and wants to determine the optimal storage policy. The storage costs are given by the following equation: Storage Cost = (Number of Units Stored)^2 / 100 Using the concept of inventory management, derive the optimal storage policy for the company.

Answer Options

A. The company should store all 800 units of goods in the warehouse.
Correct Answer B. The company should store 600 units of goods in the warehouse and order 200 more units.
C. The company should store 400 units of goods in the warehouse and order 400 more units.
D. The company should store 200 units of goods in the warehouse and order 600 more units.
Correct Answer
B
Correct Option:
The company should store 600 units of goods in the warehouse and order 200 more units.

About This Question

This is Post Utme Skyline University 2023 Commerce Question 22. It is one of the objective questions from the 2023 Post Utme Skyline University Commerce examination.

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