When considering quantity discounts, the optimal order quantity may be affected by the price breaks offered at different order quantities. As the order quantity increases, the cost per unit may decrease due to quantity discounts, which may offset the increased holding costs. Therefore, the optimal order quantity should take into account the total cost of inventory, which includes both the holding and ordering costs as well as the cost of the items themselves.

In some cases, the optimal order quantity may result in a higher total cost than a lower order quantity that does not qualify for a quantity discount. In such cases, the business may need to evaluate the benefits of the quantity discount against the increased inventory holding costs associated with the larger order quantity.

For the EOQ model, cycle time is the time between

a$.$ placing successive orders

b$.$ placing and receiving an order

c$.$ stocking out and receiving an order

d$.$ receiving and storing an order