Ran up to a tree and made another hundred arrows.
Well, it's obvious. I also came up with the idea of escaping from the dungeon using lockpicks made from iron bars (actually, you can break the bars themselves that way). But it's still quite situational. But... let's see, maybe we'll come up with something else.
This was added to counter Arandor and prevent him from making swords out of thin air and selling them throughout the game.