In the Economic Order Quantity (EOQ)model,if lead time increases from five to ten days,what will be the impact on the EOQ?
A)It will double
B)It will increase,but not double
C)It will decrease by a factor of two.
D)It will remain unchanged

Question

Quizplus · Accepted Answer

The Economic Order Quantity (EOQ) formula calculates the optimal order quantity to minimize inventory costs, such as holding costs, order costs, and shortage costs. The EOQ formula does not directly incorporate lead time; it primarily depends on the annual demand, order cost, and holding cost. Therefore, changes in lead time do not affect the EOQ calculation.

In the Economic Order Quantity (EOQ)model,if Lead Time Increases from Five