Sensitivity of EOQ to changes in relevant ordering and carrying costs. Alyia Company’s amiual demand for Model X253 is 12,000 units. Alyia is unsure about the relevant carrying cost per unit per year and the relevant ordering cost per purchase order. This table presents six possible combinations of carrying and ordering costs.

Relevant Carrying Cost per Unit per Year Relevant Ordering Cost per Purchase Order

$12 $360

$12 $240

$18 $360

$18 $240

$24 $360

$24 $240 Required 1. Determine EOQ for Alyia for each ofthe relevant ordering and carrying-cost alternatives.

2. How does your answer to requirement 1 give insight into the impact on EOQ of changes in relevant ordering and carrying costs?