Neco Model Questions Vol1 2024 Commerce Question 18
Practice objective / multiple choice question 18 from the 2024 Neco Model Questions Vol1 Commerce examination.
A retailer has an annual demand of 12,000 units for a product. The ordering cost per order is \(\,\text{₦}15,000\) and the holding cost is 25% of the unit cost per year. Each unit costs \(\,\text{₦}2,400\). The warehouse can hold at most 300 units at any time. Using the Economic Order Quantity (EOQ) model but respecting the storage limit, determine the optimal order quantity (in units) and the resulting annual total relevant cost (ordering + holding) in naira.
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About This Question
This is Neco Model Questions Vol1 2024 Commerce Question 18. It is one of the objective questions from the 2024 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Hard .
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