Waec Model Questions Vol1 2019 Commerce Question 50

Practice objective / multiple choice question 50 from the 2019 Waec Model Questions Vol1 Commerce examination.

Waec Model Questions Vol1 2019 Commerce Objective / Multiple Choice Hard Difficulty
Question 50 WAEC_MODEL_QUESTIONS_VOL1 • 2019 • COMMERCE • objective

A warehouse stocks a product with an annual demand of 12,000 units. The ordering cost per order is ₦2,500 and the holding cost is 20% of the unit cost per year. The unit cost is ₦150. Lead time is 15 days and demand is uniform throughout the 365‑day year. The company requires a 95% service level, and the standard deviation of daily demand during lead time is 4 units.\n(a) Determine the Economic Order Quantity (EOQ), rounded to the nearest whole unit.\n(b) Determine the reorder point (in units) that incorporates the required safety stock.

Answer Options

A. EOQ = 1,265 units; Reorder point = 351 units
Correct Answer B. EOQ = 1,414 units; Reorder point = 518 units
C. EOQ = 1,400 units; Reorder point = 594 units
D. EOQ = 633 units; Reorder point = 523 units
Correct Answer
B
Correct Option:
EOQ = 1,414 units; Reorder point = 518 units

About This Question

This is Waec Model Questions Vol1 2019 Commerce Question 50. It is one of the objective questions from the 2019 Waec Model Questions Vol1 Commerce examination.

Difficulty level: Hard .

View More Waec Model Questions Vol1 2019 Commerce Questions More Waec Model Questions Vol1 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