In the basic EOQ model, if lead time increases from 5 to 10 days, the EOQ will
A) double.
B) increase, but not by double the amount.
C) remain the same.
D) decrease.

Question

Quizplus · Accepted Answer

The Economic Order Quantity (EOQ) formula does not include lead time as a variable; it is primarily determined by the demand rate, ordering costs, and holding costs. Therefore, changes in lead time do not affect the EOQ.

In the Basic EOQ Model, If Lead Time Increases from 5