Gce Model Questions Vol1 2022 Commerce Question 8
Practice objective / multiple choice question 8 from the 2022 Gce Model Questions Vol1 Commerce examination.
A warehouse stocks a single product. Annual demand is 12,000 units. The ordering cost is ₦8,000 per order and the unit cost is ₦200. Holding cost equals \(25\%\) of the unit cost per year. Lead‑time demand is normally distributed with mean 200 units and standard deviation 50 units. To achieve a \(95\%\) service level, determine (a) the Economic Order Quantity (EOQ) and (b) the reorder point (ROP). Give the EOQ (rounded to the nearest unit) and the ROP (rounded to the nearest unit).
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About This Question
This is Gce Model Questions Vol1 2022 Commerce Question 8. It is one of the objective questions from the 2022 Gce Model Questions Vol1 Commerce examination.
Difficulty level: Hard .
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