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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
Rajpreet K Lalli
Management of Operations
Case: Discopress
Abstract
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