1.When the purchasing department at the TFC buys PET bottles, the clerical support, forms, and supplies to facilitate the purchase are examples of:

a.Ordering costs

b.Holding costs

c.Shortage costs

d.Carrying costs

e.None of these options are correct

2.You are working for a company in purchasing. Because oranges are such an important part of your product and the quality of the oranges influences the quality of your juice, you have cultivated a close, partnering relationship with squeeze, a supplier of oranges from the US. Which of the following is NOT likely to be an aspect of this relationship?

a.Squeeze reduced lead-time on the company orders from 3 months to 5 days

b.Squeeze ships small quantities to the company

c.Squeeze delivered exact requirements allowing the company to reduce warehouse space by 7500 square feet

d.Squeeze bids against at least 6 other suppliers for every purchase order