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2 0 - 2 0 Sensitivity of EOO to changes in relevant ordering and carrying costs, cost of prediction error. Alpha Company's annual demand for
Sensitivity of EOO to changes in relevant ordering and carrying costs, cost of prediction error. Alpha Company's annual demand for its only product, XT is units. Alpha is currently analyzing possible combinations of relevant carrying cost per unit per year and relevant ordering cost per purchase order, depending on the company's choice of supplier and average levels of inventory. This table presents three possible combinations of carrying and ordering costs.
tableRelevant Carrying Cost per Unit per Year,Relevant Ordering Cost per Purchase Order$$
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