Essay on DiscopressRajpreet K Lalli
Management of Operations
This is a scenario presented where by an organization is willing to procure Discopress gadgets. The firm is willing to make a $10,000 capital investment. The case study below seeks to answer the question on the best approach, so as to spend as little on acquisition cost. While at the same time ensuring that, they get maximum returns on their initial investment. This however, has placed them in a position of two scenarios as they seek to ensure maximum returns on the investment. The study seeks to determine whether the MOD option is viable, as they look for value for their money.
The study below will look into both scenarios:
Case 1: Orders are placed by title. …show more content…
Therefore the solution to the above scenario, putting into consideration the available data and information is that; they should do away with any thoughts of considering adoption of the MPD. Going that way will most likely lead them, to incurring extra cost on acquisition. Though ordering by use of a master stampter may prove to be faster and theoretically efficient, it comes along with extra cost. This cost would not have otherwise have been incurred had they avoided the master stampter.
* The expiration of the title is one year. Therefore this is a short period, result of which would save the organization extra cost on the renewal of the Titles.
* The case does not consider Discopress for their economic challenges including; slow growth, mature industry, and low profits. Therefore this proves that it is not an all-round consideration and it does not look at all the aspects of a business. This will save the organization from the agony of all the above.
* Failure to follow the case will save the organization on the costs of paying for the Discopress per eligible title.
* Failure to adopt the case they may not realize the full benefits of being in a one year probation period for the titles before they expire. The one period could be used as a testing period for…
Essay on Discopress1432 Words | 6 Pages
| |Minimum order quantity of 500. |Minimum order quantity of 12. | |Discopress offered mass production of CDs, Dvds, video games. |Discopress only did on demand manufacturing of CDs till date. | Discopress has recently signed a contract for mass production of movie titles for Farnsworth Filmed Entertainment (FFE). FFE had an 18% inventory holding cost. FFE had around 240…