Gce Model Questions Vol1 2021 Commerce Question 29
Practice objective / multiple choice question 29 from the 2021 Gce Model Questions Vol1 Commerce examination.
A retailer faces an annual demand of 12 000 units for a product. The ordering cost is \(\text{₦}5{,}000\) per order and the holding cost is 20 % of the unit cost per year. The unit cost is \(\text{₦}200\). Lead time is 10 days. The retailer wants a 95 % service level; daily demand is assumed constant and the standard deviation of daily demand is 30 units. Determine (a) the Economic Order Quantity (EOQ), (b) the safety stock required, and (c) the total annual inventory cost (ordering + holding + safety‑stock holding). Give all monetary values to the nearest naira.
Answer Options
About This Question
This is Gce Model Questions Vol1 2021 Commerce Question 29. It is one of the objective questions from the 2021 Gce Model Questions Vol1 Commerce examination.
Difficulty level: Hard .
Master the Exam!
You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.