Essay on Discopress

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| | |Discopress Case Study | |Operations Management | | | |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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