Problem 2.Assuming a 250-day working year, D=1000 and EOQ = 200 units. What is the expected time between orders?

a. 5 days between orders

b. 0.8 days between orders

c. 1.25 days between orders

d. 50 days between orders

e. 25 days between orders

Challenging Problem:

In the basic EOQ model, if the cost of placing an order doubles, and all other values remain constant, the EOQ will _______________________ .

a. decrease by about 141%

b. increase by about 141%

c. increase by about 41%

d. increase, but more data is needed to say by how much

e. either increase or decrease by 50%