Vetox sells industrial chemicals. One of their inputs can be purchased in either jugs orbarrels. A jug contains one gallon, while a barrel contains 55 gallons. The price pergallon is the same with either container. Vetox is charged a fixed amount per orderwhether it purchases jugs or barrels. The inventory holding cost per gallon per monthis the same with either jugs or barrels. Vetox chooses an order quantity to minimizeordering and holding costs per year. Would Vetox purchase a greater number of gallonswith each order if it purchased with jugs or with barrels?a. They would order a greater number of gallons with barrels.b. They would order the same number of gallons with either container.c. They would order a greater number of gallons with jugs.d. They might order a greater number of gallons with jugs or with barrels, depending onvarious factors like the demand rate, ordering cost, and holding cost.
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Vetox sells industrial chemicals. One of their inputs can be purchased in either jugs or
barrels. A jug contains one gallon, while a barrel contains 55 gallons. The price per
gallon is the same with either container. Vetox is charged a fixed amount per order
whether it purchases jugs or barrels. The inventory holding cost per gallon per month
is the same with either jugs or barrels. Vetox chooses an order quantity to minimize
ordering and holding costs per year. Would Vetox purchase a greater number of gallons
with each order if it purchased with jugs or with barrels?
a. They would order a greater number of gallons with barrels.
b. They would order the same number of gallons with either container.
c. They would order a greater number of gallons with jugs.
d. They might order a greater number of gallons with jugs or with barrels, depending on
various factors like the demand rate, ordering cost, and holding cost.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
