ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What is the name of method under discount quantity?
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Holding cost same, Holding cost different
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Holding cost similar, Holding cost rare
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Holding cost constant, Holding cost not constant
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Holding cost flexible, Holding cost permanent
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Explanation:
Detailed explanation-1: -A quantity discount is an incentive offered to buyers that results in a decreased cost per unit of goods or materials when purchased in greater numbers. Enticing buyers to purchase in bulk enables sellers to increase their units per transaction (UPT), lower their inventories, and potentially reduce per-unit costs.
Detailed explanation-2: -The total cost of inventory is the sum of the purchase, ordering and holding costs. As a formula: TC = PC + OC + HC, where TC is the Total Cost; PC is Purchase Cost; OC is Ordering Cost; and HC is Holding Cost.
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