Question 1: $100 This practice involves purchasing components rather than producing them in house. Define the outsourcing stock-out costs the outsourcing Question 2: $200 the two-bin inventory system Thi htory bases the value of a firm's cost of goods sold on the newest inventory the the seasonal demand h the goods purchased least recently. total ordering costs Question 2: $200 This method of accounting for inventory bases the value of a firm's cost of goods sold on the newest inventory items and the value of the remaining (ending) inventory on the goods purchased least recently. efine the seasonal demand the last-in, first-out inventory method Question 3: $300 EVE total ordering costs nce of a safety stock, when orders are placed for quantities less than those indicated using se costs will be the greater of the two major inventory costs. the stock-out costs the two-bin inventory system Question 3: $300 Everything else being equal and in the absence of a safety stock, when orders are placed for quantities less than those indicated using the Economic Ordering Quantity model, these costs will be the greater of the two major inventory costs. Define total ordering costs ordering costs Question 4: $400 Thi the quantity discount le sum of a firm's total carrying and ordering costs. the safety stock stock-out costs