For the 500-count copy paper EOQ item, which EOQ assumption is stated as correct?

• A. Demand does not fluctuate
• B. Lead time does not fluctuate
• C. Both
• D. Neither

Answer: (B)

The essential idea here is that the EOQ model relies on certain parameters being fixed so you can derive a single, reliable order quantity. One of those fixed parameters is lead time—the time from placing an order to receiving it. When lead time is assumed not to fluctuate, you can predict exactly how much stock will be consumed during that interval and set a stable reorder point and order size. That’s why the statement “lead time does not fluctuate” is the one EOQ assumption the item is highlighting. If lead time varied, you’d risk stockouts and would need safety stock or a more complex model to maintain service levels. While EOQ does assume demand is known and relatively stable as well, the prompt’s stated assumption to identify here is the constancy of lead time, which is central to determining when to reorder.