Bulk Buying

If your Suppliers offer quantity discounts for buying in bulk you can define the quantity break points and discounts offered for each product. Three methods can be modelled in the system:

• Bulk - any purchase quantity equal to or greater than the bulk quantity specified attracts that discount unless a higher quantity discount applies.

• Step - each bulk discount applies to as many items as can be purchased in that pack quantity. Lesser quantity discounts may be applied to the remainder from a larger quantity discount.

• Incremental - this is the opposite to step in that the discount only applies to the quantity of goods over the specified quantity.

To illustrate the difference in discount calculation assume that 72 units are to be purchased, and that discounts are offered of 10% at 50 units, and 2% at 10 units. The resultant order pricing would be as follows:

• Bulk - 72 is greater than 50 so the 10% discount applies to all 72 units.

• Step - One pack of 50 units may be bought at the 10% discount, a further 2 packs of 10 may be purchased at the 2% discount while the remaining 2 units must be bought at full cost price.

• Incremental - the first 10 units are at full price, the next 40 (difference between the 50 unit and the 10 unit discounts) are at 2% and the last 22 units receive 5% discount (72 units ordered less the 50 required to achieve 5%).

The auto purchasing system makes full use of this information and will place orders to suit each break point applicable, maximising your discount advantages.