Extreme games purchases blank dvd disks onto which it, Ask an Expert

Management Studies

Extreme Games purchases blank DVD disks onto which it copies its software for sale through its mail order operation. A disk costs extreme $.20. Processing an order for more disks cost $15. Extreme uses 60000 disks annually, and the company has a 25% cost of capital.

a. Find the optimal order quantity.

b. How many orders are placed annually?

c. How frequently will orders be placed?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91760542

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