In the basic EOQ model, if lead time increases from five to 10 days, the EOQ will:
A) double.
B) increase, but not double.
C) decrease by a factor of 2.
D) remain the samE.
E) increase, but more information is needed to calculate exactly how much.

Question

Quizplus · Accepted Answer

The EOQ (Economic Order Quantity) model is not affected by lead time. EOQ is determined by demand rate, ordering cost, and holding cost, not lead time.

In the Basic EOQ Model, If Lead Time Increases from Five