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30. Which of the following is NOT an ordering cost? a. cost of receiving inventory b. cost of preparing the order c. cost of the

30. Which of the following is NOT an ordering cost?

a.

cost of receiving inventory

b.

cost of preparing the order

c.

cost of the merchandise ordered

d.

cost of storing the inventory

31. The size of the safety stock is directly affected by all of the following, EXCEPT the

a.

cost of a stockout.

b.

probability of a stockout.

c.

carrying cost of safety stock.

d.

economic order quantity.

32. In order to use the Optimum Production Run (OPR) formula, what must be TRUE?

A. Set-up cost/set-up must be constant

B. Carrying cost/unit must be constant

C. Manufacturing cost/unit must be constant

D. All of the above must be true

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