Neco 2021 Commerce Question 19

Practice objective / multiple choice question 19 from the 2021 Neco Commerce examination.

Neco 2021 Commerce Objective / Multiple Choice Hard Difficulty
Question 19 NECO • 2021 • COMMERCE • objective

A retailer has an annual demand of 12,000 units for a product that costs ₦200 per unit. The ordering cost is ₦5,000 per order and the holding cost is 20 % of the unit cost per year. The supplier's lead time is 10 days, and the warehouse can hold at most 800 units at any time. (Assume 365 days in a year.) Determine the order quantity that satisfies the space constraint and compute the reorder point (in units).

Answer Options

Correct Answer A. Order quantity = 800 units; Reorder point = 329 units
B. Order quantity = 800 units; Reorder point = 333 units
C. Order quantity = 800 units; Reorder point = 394 units
D. Order quantity = 1732 units; Reorder point = 329 units
Correct Answer
A
Correct Option:
Order quantity = 800 units; Reorder point = 329 units

About This Question

This is Neco 2021 Commerce Question 19. It is one of the objective questions from the 2021 Neco Commerce examination.

Difficulty level: Hard .

View More Neco 2021 Commerce Questions More Neco Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support