Gce Model Questions Vol1 2019 Commerce Question 17
Practice objective / multiple choice question 17 from the 2019 Gce Model Questions Vol1 Commerce examination.
A retailer faces an annual demand of \(12{,}000\) units for a product. The ordering cost is \(\text{₦}20{,}000\) per order and the holding cost is \(25\%\) of the unit cost per year. The supplier offers quantity discounts: unit cost is \(\text{₦}800\) for orders below \(1{,}000\) units, \(\text{₦}760\) for orders of \(1{,}000\) units or more, and \(\text{₦}720\) for orders of \(2{,}500\) units or more. Determine the order quantity that minimises the total annual cost.
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About This Question
This is Gce Model Questions Vol1 2019 Commerce Question 17. It is one of the objective questions from the 2019 Gce Model Questions Vol1 Commerce examination.
Difficulty level: Hard .
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