Neco 2017 Commerce Question 22
Practice objective / multiple choice question 22 from the 2017 Neco Commerce examination.
A warehouse stores a single product. Annual demand is 12,000 units. The ordering cost per order is ₦2,500. The holding cost is \(25\%\) of the unit cost per year, and the unit cost is ₦800. The warehouse can hold at most 200 units at any time. Using the Economic Order Quantity (EOQ) model, determine the order quantity that minimises the total relevant cost while respecting the storage capacity, and compute the resulting annual total cost (including purchase cost).
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About This Question
This is Neco 2017 Commerce Question 22. It is one of the objective questions from the 2017 Neco Commerce examination.
Difficulty level: Hard .
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