Zip Games Purchases Blank DVD Disks onto Which It Copies

question 16

Essay

Zip Games purchases blank DVD 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:

On-The-Job Training

Training provided to employees at the workplace while they are performing their regular job tasks, often under the guidance of a skilled coworker or supervisor.

Subject Matter Experts

Individuals with deep understanding and expertise in a particular field, often consulted for their specialized knowledge or skills.

Internal Training

Instructional programs provided by an organization to improve the professional skills and knowledge of its employees.

Dewey Decimal System

A proprietary library classification system created by Melvil Dewey in 1876 to organize books by subject.