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 two.
D) remain the same.
E) none of these.

Question

Quizplus · Accepted Answer

The Economic Order Quantity (EOQ) is not affected by lead time; it is determined by demand rate, ordering cost, and holding cost. Lead time affects reorder point, not EOQ.

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