Post Utme Skyline University 2023 Commerce Question 25

Practice objective / multiple choice question 25 from the 2023 Post Utme Skyline University Commerce examination.

Post Utme Skyline University 2023 Commerce Objective / Multiple Choice
Question 25 POST_UTME_SKYLINE_UNIVERSITY • 2023 • COMMERCE • objective

A firm has a warehouse with a capacity to store 500 units of goods. The firm receives a shipment of 300 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 firm.

Answer Options

A. The firm should store all 300 units of goods in the warehouse.
Correct Answer B. The firm should store 200 units of goods in the warehouse and order 100 more units.
C. The firm should store 100 units of goods in the warehouse and order 200 more units.
D. The firm should store 50 units of goods in the warehouse and order 250 more units.
Correct Answer
B
Correct Option:
The firm should store 200 units of goods in the warehouse and order 100 more units.

About This Question

This is Post Utme Skyline University 2023 Commerce Question 25. It is one of the objective questions from the 2023 Post Utme Skyline University Commerce examination.

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