Waec Model Questions Vol1 2020 Commerce Question 32

Practice objective / multiple choice question 32 from the 2020 Waec Model Questions Vol1 Commerce examination.

Waec Model Questions Vol1 2020 Commerce Objective / Multiple Choice Hard Difficulty
Question 32 WAEC_MODEL_QUESTIONS_VOL1 • 2020 • COMMERCE • objective

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).

Answer Options

A. EOQ = 600 units; Reorder point = 340 units
B. EOQ = 540 units; Reorder point = 370 units
C. EOQ = 580 units; Reorder point = 330 units
Correct Answer D. EOQ = 566 units; Reorder point = 356 units
Correct Answer
D
Correct Option:
EOQ = 566 units; Reorder point = 356 units

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 .

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