Quantity discount analysis
Weigh an all-units price break against ordering and holding costs.
ProcurementCompare product prices, freight, and other shipment charges for two suppliers supplying the same required quantity.
Compare product prices, freight, and other shipment charges for two suppliers supplying the same required quantity.
Cost comparison only. Verify quantity eligibility, quality, delivery, currency, and included charges.
Both offers use the same required quantity and currency. Add all confirmed charges within one agreed delivery boundary, without double-counting freight already included in the price. The lower entered total is a cost comparison, not a supplier-quality or sourcing recommendation. Equal totals are reported as a tie.
Compare the cost to receive the same usable quantity at the same destination. Bring freight, setup, and other entered charges into the same currency and scope as the supplier price.
A lower landed unit cost does not establish that a supplier is qualified, available, or low risk. Check lead time, quality, payment conditions, and quote validity separately. Do not allocate the same fixed shipment charge to each unit and then add it again.
Confirm quote validity, minimum orders, taxes, duties, Incoterms, quality, payment terms, capacity, and lead time separately. This tool neither applies exchange rates nor prices overbuying, financing, or supplier risk.
Worked example: Freight Invoice Auditing: Match Charges Before Disputing Them
Not here. Use prices valid for the same entered quantity. Quantity-discount analysis separately models the purchase, ordering, and holding cost tradeoff of different order sizes.
No. Freight and other included charges can reverse the comparison. The result shows the total and effective cost per unit for both offers.