11. The basic EOQ model determines an optimal order quantity that minimizes the cost, which is the sum of the cost and the cost. a. ordering, holding, fixed b. holding, ordering, purchasing c. total, holding, ordering d. opportunity, holding, ordering c. purchasing, opportunity, holding 12. As the order size increases, costs increase while costs decrease a. ordering, holding b. holding, ordering c. overhead, opportunity d. opportunity, overhead c. fixed, purchasing 13. The reorder point is that triggers the placement of an order. a, a predetermined inventory level b. an average usage amount c. a new quantity determined daily d. an ever changing number c. none of the above are correct 14. A contribution margin is calculated by: 2. adding the cost of inputs to the revenue received for one service b. subtracting variable direct costs of inputs from revenue received for that service c. subtracting variable indirect costs of inputs from revenue received for that service d. subtracting fixed direct costs of inputs from revenue received for that service c. subtracting fixed indirect costs of inputs from revenue received for that service 15. "Value-based payments" is a payment method where payments: 4. are adjusted for quality metrics b. are a specific amount each time the patient uses the service c. for delivery of care are tied to improving quality and decreasing costs for a patient population over time d. are for all services associated with treating a condition over a defined period of time e. are a set amount per year per patient to guarantee value to the patient 16. You see on the financial reports that the direct costs for an elbow replacement are higher than the revenue As the Operations Manager, what are your recommendations? a. Ask marketing to advertise the excellent outcomes for this procedure in order to increase volume, thereby reducing the cost per unit of service b. Expect CMS to immediately pay more for the procedure in order to increase revenue c. Work with the orthopedic department on reducing the supply cost, reducing the length of stay, or improving the process for this procedure d. Terminate the orthopedic surgeons as their salary costs are too high e. both a and c should be implemented