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1. Restatement of the case
2. Problem Statement
3. Quantitative Analysis
4. Qualitative Analysis
- Restatement of the case
This case is about the Discopress, a manufacturing company that can only do break cevn and is facing issues regarding pending bulk and MOD orders. One of the issues with the company is lack of understanding manufacturing on demand (MOD). There is lack of manufacturing experience. Company faced issues regarding quality during the manufacturing process because if the silk-screening art work which created problems. The quality issues led to additional requirement of another metal master. However, with the passage of time, systems got revolutionized and manufacturing on demand was started and now the higher cost was associated with burning of disk. The mass production was started but quality was marginally inferior and sold quickly as compared to content assets. Due to high unit costs, break even the only realistic option. A variable plus approach increased Disco press price to cost plus 55%. In addition, it must be emphasized that Discopress also exploited the market on two niches. Company was manufacturing only CD’s as DVS’s had higher per unit cost, but lack of clients make it worthwhile for the company.
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