Zip games purchases blank 35-inch disks onto which it, Ask an Expert

Management Studies

Zip Games purchases blank 3.5-inch disks onto which it copies its software for sale through its mail order operation. The relevant information is given as follows: the daily demand is 170 disks; the price of a disk is $0.2 and the annual per unit inventory cost is 25% of the price of a disk; the ordering cost is $15. It takes 4 days for an order to arrive Zip Games. The company operates 365 days a year.

a. What are the values for order quantity that will minimize total cost?

b. What is the maximum inventory?

c. What is the cycle time? d. What is the re-order point?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92478326

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