In the basic economic order quantity (EOQ) model, if monthly demand is a constant 430 units, the

Question:

In the basic economic order quantity (EOQ) model, if monthly demand is a constant 430 units, the order quantity is 144 (12 dozen), and the firm operates during 50 five-day weeks a year, the cycle time will be approximately:

a. 7 working days.

b. 10 working days.

c. 12 working days

d. 84 working days.

e. None of the above.

Economic Order Quantity
Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs. This production-scheduling model was developed in 1913 by Ford W. Harris and has...