Essay on Discopress

1432 Words Jul 26th, 2014 6 Pages
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|Discopress Case Study |
|Operations Management |
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|Deepali |
|6/9/2014
…show more content…
|Low Overhead Cost. |
|Low Variable Cost. |Higher Variable Cost. |
|Superior Quality. |Slightly Inferior Quality. |
|Suitable for fast selling titles. |Suitable for slow selling titles. |
|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 slower selling titles also identified for whom the 18% inventory holding cost would not justify the mass production route. These titles would be an ideal candidate for the on demand manufacturing. Discopress would have additional capital investment of $10,000, if they add on demand manufacturing of DVDs to their offerings.

Problem Statement

Pace Lochte, the director of on demand

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