Question 7.7. (TCO 12) Quality costs include (Points : 3)

prevention costs. stockout costs. purchasing costs. ordering costs.

Question 8.8. (TCO 12) Which of the following statements about the economic-order-quantity decision model is FALSE? (Points : 3)

It assumes ordering costs and carrying costs are relevant. It assumes stockout costs are irrelevant if no stockouts occur. It assumes purchasing costs are relevant when the cost per unit changes due to the quantity ordered. It assumes quality costs are irrelevant if quality is unaffected by the number of units purchased.

Question 9.9. (TCO 12) The ________ describes the flow of goods, services, and information from the initial sources of materials and services to the delivery of products to consumers. (Points : 3)

supply chain material requirements plan (MRP) customer list enterprise requirements plan (ERP)

Question 10.10. (TCO 12) Liberty Celebrations, Inc., manufactures a line of flags. The annual demand for its flag display is estimated to be 100,000 units. The annual cost of carrying one unit in inventory is $1.60, and the cost to initiate a production run is $40. There are no flag displays on hand but Liberty had scheduled 60 equal production runs of the display sets for the coming year, the first of which is to be run immediately. Liberty Celebrations has 250 business days per year. Assume that sales occur uniformly throughout the year and that production is instantaneous. If Liberty Celebrations does not maintain a safety stock, the estimated total carrying cost for the flag displays for the coming year is (Points : 3)

$2,000. $2,200. $2,400. $3,000.