Gce Model Questions Vol1 2017 Commerce Question 46
Practice objective / multiple choice question 46 from the 2017 Gce Model Questions Vol1 Commerce examination.
A company stores a product in its warehouse. The annual demand for the product is (12,000) units. The cost of placing an order is ₦500. The holding cost is 20 % of the unit cost per year. The unit cost depends on the order quantity as follows: up to 500 units - ₦200 per unit; more than 500 but not exceeding 1 500 units - ₦190 per unit; more than 1 500 units - ₦180 per unit. Determine the order quantity that minimises the total annual cost (ordering cost + holding cost + purchase cost).
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About This Question
This is Gce Model Questions Vol1 2017 Commerce Question 46. It is one of the objective questions from the 2017 Gce Model Questions Vol1 Commerce examination.
Difficulty level: Hard .
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