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

question 63

Multiple Choice

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.

---

Definitions:

Principal's Business

The central activities or operations that a principal or company is engaged in or the focus area of its business.

Nonemployee Agents

Individuals or entities that act on behalf of a company but are not classified as employees, often for specific tasks or functions.

Corporate Officers

High-ranking executives appointed to manage an organization or corporation, such as CEOs, CFOs, and COOs, responsible for its day-to-day operations.

Employees

Individuals who are hired by a business or organization to perform work in exchange for compensation.