Zip Games Purchases Blank 3

question 38

Essay

Zip Games purchases blank 3.5-inch disks onto which it copies its software for sale through its mail order operation. A disk costs Zip $.20. Processing an order for more disks cost $15. Zip 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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Definitions:

Reengineering

The process of redesigning business processes and workflows to achieve significant improvements in critical aspects like cost, service, or speed.

Performing Task

Execution of a specific duty or assignment as part of one's role or responsibilities.

Professional Employer Organization

A firm that provides a service under which an employer can outsource employee management tasks, such as employee benefits, payroll, workers' compensation, and compliance issues.

Human Resource Services

Services provided by HR departments to manage and support an organization's workforce, including recruitment, training, and employee relations.