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THE FEUTEX TOOLKIT

Supplier Bulk Discount Holding Trade-off

Compare purchase discounts with incremental inventory financing and storage expense.

Supply Chain workspace● Runs in your browser
01 Your input
02 Your result
View or copy raw result data
FormulaAnnual purchase saving = v.annual_demand*(v.normal_price-v.bulk_price) ; Holding change = (v.bulk_qty*v.bulk_price-v.normal_qty*v.normal_price)/2*v.holding_rate/100 ; Net annual saving = v.annual_demand*(v.normal_price-v.bulk_price)-(v.bulk_qty*v.bulk_price-v.normal_qty*v.normal_price)/2*v.holding_rate/100
Sources and model references

Worked example

Inputs

Normal qty
1000 items
Bulk qty
2000 items
Normal price
10 currency
Bulk price
9 currency
Annual demand
12000 items
Holding rate
20 %

Expected results

Annual purchase saving
12000 currency
Holding change
800 currency
Net annual saving
11200 currency

Load the example in the workspace to reproduce these results. Display rounding does not change the underlying calculation.

How to use this tool

  1. Enter your own assumptions using a consistent currency and period.
  2. Review the scenario outputs and compare alternative inputs.
  3. Check the stated model limits before using the result in an operating plan.

Try this example

{
  "normal_qty": 1000,
  "bulk_qty": 2000,
  "normal_price": 10,
  "bulk_price": 9,
  "annual_demand": 12000,
  "holding_rate": 20
}

Accuracy and scope

Deterministic planning scenario; inputs are assumptions, not forecasts. Excludes taxes, financing, legal requirements and costs not explicitly entered. Source explains the underlying planning framework; this specific scenario arithmetic is original.

Is my data uploaded?

This tool runs locally in your browser. Input and output are not sent to a processing server. Copy or download your result before leaving the page.