How to Evaluate Supplier Bulk Discounts and Minimum Order Quantities
Should you accept a supplier’s bulk discount? Calculate inventory carrying costs, cash tied up, demand risk, and minimum order quantity alternatives.
Should you accept a supplier’s bulk discount? Calculate inventory carrying costs, cash tied up, demand risk, and minimum order quantity alternatives.
Should you discontinue an unprofitable product? Compare avoidable costs, contribution margin, capacity and exit costs before making the call.
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