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CHAPTER 20 QUIZWhich of the following categories of costs are important when managing inventories of goods for sale according to the authors of the text?Purchasing, ordering, supply, spoilage, and opportunityPurchasing, stockout, carrying, ordering, and qualityBuying, holding, invoicing, opportunity, and investmentSupply, obsolescence, holding, stockout, and transportation-inThe following data apply to questions 2-6. 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 $50. 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.[CMA Adapted] If Liberty Celebrations does not maintain a safety stock, the estimated total carrying cost for the flag displays for the coming year isa.$2,667.b.$2,000.c.$1,600.d.$1,333.[CMA Adapted] The estimated total set-up cost for the flag displays for the coming year isa.$2,000.b.$3,000.c.$8,000.d.$12,500.[CMA Adapted] If Liberty Celebrations were to schedule 30 equal production runs of the flag display for the coming year, instead of 60 equal runs, the sum of carrying costs and set-up costs for the coming year would increase (decrease) by a.$(166).b.$-0-.c.$166.d.$1,500.[CMA Adapted] The number of production runs per year of the flag displays that would minimize the sum of carrying costs and set-up costs for the coming year isa.50.b.40.c.30.d.20.[CMA Adapted] A safety stock of a 3-day supply of flag displays would increase Liberty Celebration’s planned average inventory in units bya.1,200.b.800.c.400.d.zero.Which of the following is not a major feature of a just-in-time production system?Workers are t