What is the difference between all-unit quantity discount and incremental discount schedules?
- What were MARS total costs per year prior to the new price structure when the diesel engine price was $4,800? Was Mars’s using the EOQ method?
- With the volume purchase discounts and warehouse constraints, what is the best ordering quantity?
- With the change in supplier and the resulting addition of volume purchase discounts and different transportation rates, how are costs and EOQs affected?
- What is the difference between all-unit quantity discount and incremental discount schedules? How would the costs and EOQs differ? Which would be preferable assuming that both share the same cost figures?
- How will these changes impact the Lean Manufacturing Philosophy at MARS? What would be the resulting changes in inventory levels?
