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?
a. Q* = 6000
b. 10 orders placed annually
c. every 36.5 days
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