1 .		The cost of goods acquired from suppliers, including incoming freight costs are the [Hint]   carrying costs.   ordering costs.   purchasing costs.   quality costs.
2 .		The costs that arise while holding the inventory until it is sold are known as [Hint]   carrying costs.   ordering costs.   purchasing costs.   stockout costs.
3 .		An example of an ordering cost is [Hint]   purchase price.   spoilage.   freight costs.   inspecting goods received.
4 .		Loss of customer sales due to being out of the product the customer wants is an example of a(n) [Hint]   purchasing cost.   carrying cost.   stockout cost.   quality cost.
5 .		The costs that result when the features and characteristics of a product are not in conformity to the customer specifications is a(n) [Hint]   quality cost.   stockout cost.   carrying cost.   ordering cost.
6 .		Dirt Farms stock fertilizer stakes to sell. These stakes are used with both indoor and outdoor flowering plants. Dirt Farms purchases the stakes from Feeder, a high quality plant food seller. Dirt Farms sells 500 packages of stakes each week. A package costs Dirt Farms 50 cents. It takes 3 weeks for Dirt Farms to receive the stakes after it orders them. Dirt Farms needs a 12% annual return on investment. Relevant ordering costs per shipment are $25. The costs of storage, insurance, etc., is 10 cents per package. What is the relevant carrying cost for a package of fertilizer stakes? [Hint]   10 cents   16 cents   60 cents   66 cents
7 .		Dirt Farms stock fertilizer stakes to sell. These stakes are used with both indoor and outdoor flowering plants. Dirt Farms purchases the stakes from Feeder, a high quality plant food seller. Dirt Farms sells 500 packages of stakes each week (or 26,000 per year). A package costs Dirt Farms 50 cents. It takes 3 weeks for Dirt Farms to receive the stakes after it orders them. Dirt Farms needs a 12% annual return on investment. Relevant ordering costs per shipment are $25. The costs of storage, insurance, etc., is 10 cents per package. What is the economic order quantity (EOQ) for Dirt Farms with respect to the fertilizer stakes? [Hint]   395   500   1000   2850
8 .		Dirt Farms stock fertilizer stakes to sell. These stakes are used with both indoor and outdoor flowering plants. Dirt Farms purchases the stakes from Feeder, a high quality plant food seller. Dirt Farms sells 500 packages of stakes each week (or 26,000 per year). A package costs Dirt Farms 50 cents. It takes 3 weeks for Dirt Farms to receive the stakes after it orders them. Dirt Farms needs a 12% annual return on investment. Relevant ordering costs per shipment are $25. The costs of storage, insurance, etc., is 10 cents per package. Assuming that Dirt Farms decides to order in lot sizes of 3,000 packages, what will the annual relevant total costs incurred be? [Hint]   $360   $457   $720   $913
9 .		Dirt Farms stock fertilizer stakes to sell. These stakes are used with both indoor and outdoor flowering plants. Dirt Farms purchases the stakes from Feeder, a high quality plant food seller. Dirt Farms sells 500 packages of stakes each week (or 26,000 per year). A package costs Dirt Farms 50 cents. It takes 3 weeks for Dirt Farms to receive the stakes after it orders them. Dirt Farms needs a 12% annual return on investment. Relevant ordering costs per shipment are $25. The costs of storage, insurance, etc., is 10 cents per package. If Dirt Farms wants to have a safety stock on hand equal to 1 week's sales, it should reorder when current levels reach what amount? [Hint]   1,000   1,500   2,000   2,850
10 .		A just-in-time system is also known as a(n) [Hint]   push-through system.   lean production system.   materials requirement system.   demand-push system.