Rajpreet K Lalli
Management of Operations
Case: Discopress

Abstract
This is a scenario presented where by an organization is willing to procure Discopress gadgets. The firm is willing to make a $10,000 capital investment. The case study below seeks to answer the question on the best approach, so as to spend as little on acquisition cost. While at the same time ensuring that, they get maximum returns on their initial investment. This however, has placed them in a position of two scenarios as they seek to ensure maximum returns on the investment. The study seeks to determine whether the MOD option is viable, as they look for value for their money.
The study below will look into both scenarios:
Case 1: Orders are placed by title.
Case 2: There is no master stampter required and the main concern is whether they can place orders annually.
A look at the individual cases determines that as for case 1; the orders are made as per the title. The main concern here is the number of titles they have and as a result, how much they would be willing to pay Discopress per title that requires 500 units. We also look into the effects of considering that this has a one year expiry period. As for Case 2; No Master Stampter required and we also seek to determine if the FFE can place orders on a yearly basis and whether at the end of year 2 the capital investment could have been covered.
PROBLEM STATEMENT
The decision to be made is of whether the MOD option is viable given that the capital investment has to be covered by year 2. Using the MPD, how many titles are available and how much are we willing to pay on Discopress per eligible title?

Qualitative analysis
Case 1
After being presented with a scenario where by; the orders are made as per title and the minimum order quantity is 500 units, with a cost of $75 per unit and a $500 ordering fee. The solution here is to