Browser-local worksheet
Enter your inputs
Nothing is uploaded or saved
How to use it
A short, reviewable workflow
- 01
Enter annual demand, cost per order, and annual holding rate.
- 02
Add at least two minimum-quantity and unit-price tiers.
- 03
Review the suggested feasible quantity and annual cost for each tier.
Useful for
Common use cases
- Evaluating volume discounts
- Challenging supplier MOQs
- Planning blanket order quantities
Important boundary
What this result cannot decide
Do not accept an MOQ solely for a calculated discount; validate storage, obsolescence, working capital, and demand risk.
Model notes
Assumptions and limitations
Assumptions
- Demand and prices remain stable for the year.
- Average cycle inventory is half the order quantity.
- Orders are replenished without shortages.
Limitations
- Capacity, shelf life, cash constraints, and safety stock are not modeled.
- Demand is treated as deterministic.
- Tier eligibility and freight rules must be checked separately.
Questions
Frequently asked
Why can the recommended tier have a higher unit price?
Buying less can reduce inventory holding cost enough to offset a higher unit price.
How is order quantity selected?
The tool calculates EOQ at each tier, then raises it to that tier’s minimum when needed.