Waec Model Questions Vol1 2024 Commerce Question 43
Practice objective / multiple choice question 43 from the 2024 Waec Model Questions Vol1 Commerce examination.
A retailer orders a product with an annual demand of 12,000 units. The ordering cost is ₦5,000 per order. Holding cost is 20 % of the unit cost per year. The unit cost depends on the order quantity as follows: - 1-500 units: ₦200 each - 501-1,000 units: ₦190 each - More than 1,000 units: ₦180 each The warehouse can hold at most 800 units at any time. Determine the order quantity that minimises the total annual cost (ordering + holding + purchase) while respecting the capacity limit, and compute that minimum total annual cost.
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About This Question
This is Waec Model Questions Vol1 2024 Commerce Question 43. It is one of the objective questions from the 2024 Waec Model Questions Vol1 Commerce examination.
Difficulty level: Hard .
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