Graphical representation of optimal quantity, average order and lead time Introduction: Economic order quantity in the optimal inventory kept by any firm which is ideal and do not incur any additional holding cost and order cost. Lead time is the time between when order is placed and its production is completed.

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Chapter 4.5, Problem 11P

Summary Introduction

To determine:

Graphical representation of optimal quantity, average order and lead time

Introduction:

Economic order quantity in the optimal inventory kept by any firm which is ideal and do not incur any additional holding cost and order cost.

Lead time is the time between when order is placed and its production is completed.

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