Question:-
Which one of the following is correct? In tile basic EOQ model, if lead time increases from 5 to 10 days, the EOQ will
Option (A)
double
Option (B)
decrease by a factor of two
Option(C)
remain the same
Option(D)
The data is insufficient to find EOQ
Correct Option:
(C)
Question Solution:
Lead time has effect on reorder point. Lead time increase or decrease has no effect on EOQ. So if lead time increases from 5 to 10 days, the EOQ will remain the same.
question-answer-faq-8898