Annual demand for Palace Corporations Product X is 10,000 units. The company is unsure about the relevant carrying cost per unit for the year and the relevant ordering cost per purchase order. The companys purchasing agent prepared a table with six possible combinations of carrying costs and ordering costs.

Part 1. For each alternative, determine the EOQ for the relevant carrying costs and ordering costs.

Part 2. How does your answer for part 1 give you insight into the impact of EOQ of change in relevant carrying costs and ordering costs?

Carrying Cost per Year $20 $20 Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alternative 5 Alternative 6 Ordering Cost per Purchase Order $240 $360 $240 $360 $240 $360 $30 $30 $40 $40