Post Utme Wellspring University 2019 Commerce Question 21

Practice objective / multiple choice question 21 from the 2019 Post Utme Wellspring University Commerce examination.

Post Utme Wellspring University 2019 Commerce Objective / Multiple Choice
Question 21 POST_UTME_WELLSPRING_UNIVERSITY • 2019 • COMMERCE • objective

In a warehouse with a storage capacity of 100,000 units, the inventory turnover ratio is 5 times per year. If the cost of holding inventory is 20% per annum, calculate the optimal order quantity using the Economic Order Quantity (EOQ) model.

Answer Options

Correct Answer A. ( EOQ = sqrt{ rac{2 imes 100,000 imes 0.20}{5}} )
B. ( EOQ = sqrt{ rac{2 imes 100,000 imes 0.20}{5 imes 0.20}} )
C. ( EOQ = sqrt{ rac{2 imes 100,000 imes 0.20}{5 imes 0.20 imes 0.20}} )
D. ( EOQ = sqrt{ rac{2 imes 100,000 imes 0.20}{5 imes 0.20 imes 0.20 imes 0.20}} )
Correct Answer
A
Correct Option:
( EOQ = sqrt{ rac{2 imes 100,000 imes 0.20}{5}} )

About This Question

This is Post Utme Wellspring University 2019 Commerce Question 21. It is one of the objective questions from the 2019 Post Utme Wellspring University Commerce examination.

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