EOQ (Economic Order Quantity) Price Break Model Users Guide,
AIR FORCE LOGISTICS MANAGEMENT CENTER GUNTER AFS AL
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Base-level logisticians have no quick or easy way to determine whether quantity discounts for locally purchased items are cost effective. As a result, the Air Force is paying a higher unit price for some items for which the vendor offers quantity discounts. In our Streamlining Local Purchase Procedures report, we recommended the development of an EOQ price break model for base-level users. We have developed a Z-100 microcomputer quantity discount model and document it in this users guide. Our objectives were to a develop a model that determines the most economical order quantity for locally purchased EOQ items b explain to users how to obtain the model and c develop procedures to use the model.
- Economics and Cost Analysis
- Logistics, Military Facilities and Supplies