Waec Model Questions Vol1 2020 Commerce Question 32
Practice objective / multiple choice question 32 from the 2020 Waec Model Questions Vol1 Commerce examination.
A warehousing manager faces an annual demand of 12,000 units for a product. The ordering cost is ₦200 per order and the holding cost is 10% of the unit cost. Each unit costs ₦150. Lead time is 10 days. Daily demand varies with a standard deviation of 5 units. To achieve a 95% service level (z = 1.65), determine (a) the Economic Order Quantity (EOQ) and (b) the reorder point (including safety stock).
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About This Question
This is Waec Model Questions Vol1 2020 Commerce Question 32. It is one of the objective questions from the 2020 Waec Model Questions Vol1 Commerce examination.
Difficulty level: Hard .
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