Book 1
Book 1
QDA
No. Units per orders 50 100 200
Price per unit 800 750 650
Total price per order 40000 75000 130000
Price diff. between orders 40000 35000 55000
Quantity diff. Between orders 50 50 100
Price per unit per order qty diff. 800 700 550
Per unit price diff at breaks 100 150
Percentage price reduction 12.50% 21.43%
500
400
300
200
100
0
50 100 200 300
Units
Price per unit Price per unit per order qty diff.
The Quantity Discount Analysis (QDA) indicates that the unit price (Price per Unit) decrease
as order quantities increase, reflecting the supplier’s quantity-based discount strategy. The
reduction in unit price is more significant at smaller quantities (from 50 to 200 units) and
becomes less pronounced as the quantity reaches 300 units. This is further supported by th
percentage price reduction, which peaks at 21.43% (from 100 to 200 units) and drops to 9.09
(from 200 to 300 units).
While QDA highlights the price reduction pattern designed to incentivize larger orders, it doe
not explain why the rate of reduction diminishes at higher quantities. This may be influenced
factors such as production costs, economies of scale, or specific pricing strategies, which
300 would require further analysis to better understand the underlying reasons.
3 4
200 300
650 600