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 Economic Order Quantity (EOQ) formula is independent of lead time; it primarily depends on the annual demand, order cost, and holding cost. Therefore, changes in lead time do not affect the EOQ.

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