Discuss the assumptions underlying the basic EOQ formula. Also, state the economic order quantity model, discuss its sensitivity, and explain its significant extensions.

The Economic Order Quantity (EOQ) model is a foundational concept in inventory management within Operations Research. It helps determine the optimal order quantity that minimizes the total cost of inventory, including ordering and holding costs. The basic EOQ formula is derived under a set of simplifying assumptions, which must be clearly understood to evaluate the model's applicability in real-world scenarios.

The fundamental assumptions underlying the basic EOQ model are:

1. Demand is Constant and Known: The model assumes that the demand for the product is constant over time and is known with certainty. There are no fluctuations or trends in the demand rate.

2. Lead Time is Constant and Known: The time between placing an order and receiving it ___ __________ ______ _________ __________ _______.
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