A supplier is offering a price discount if more is ordered at one time. The offer should be analyzed to determine if a larger order is appropriate considering:

Last Updated on February 4, 2022 by Admin 2

A supplier is offering a price discount if more is ordered at one time. The offer should be analyzed to determine if a larger order is appropriate considering:

  • the impact of the increase in average inventory levels on ABC designations
  • the reduction in material cost compared to the impact on total holding costs
  • the impact of additional items on indirect costs
  • the increase in transportation costs compared to the reduction in ordering cost
Explanation:
Reference: https://www.slideshare.net/UmairArain2/supply-chain-management-chap-11
0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments