1. Which of the following affects the calculation of the reorder point? a. Average usage b. Average lead time c. Safety stock d. All of the above 2. The role of safety stock in an organization is to a. Reduce the lead-time for an order to be received. b. Reduce the likelihood of a stockout. c. Reduce the reorder point. d. Decrease the economic order quantity. 3. The costs of preparing, issuing, and paying purchase orders, plus receiving and inspecting the items included in purchase orders is Purchasing costs. b. Ordering costs. Stockout costs. d. Carrying costs. 4. The costs associated with storing inventory such as insurance, breakage, materials handling. etc. are examples of which cost category? a. Purchasing costs. b. Ordering costs. c. Stockout costs. d. Carrying costs