In the inventory management systems (EOQ, P-system, Q-system), both the ordering cost and carrying cost are important considerations.

In the textbook, the ordering cost (also referred to as setup cost) is defined as the cost incurred when ordering a lot (batch) of items and generally does not depend on the lot size order; it is assigned to the entire batch. While the carrying cost (also referred to as holding cost) is associated with keeping items in inventory for a period of time.

Give one example of ordering (or setup) cost (e.g., cost of creating the purchase order is an example of ordering cost).

Give two examples of carrying (or holding) cost.