Inventory Management Made Simple: EOQ, ROP, EPQ, Cycle Counting, ABC Analysis & More | Chapter 12 - Quantity Discount Model Explained — Inventory Cost Optimization

Continue your operations and inventory management learning with this in-depth explanation of the Quantity Discount Model, the third major independent demand inventory model. In this video, Operations University instructor Brent Bolton explains how quantity discounts impact purchasing decisions by incorporating purchase cost alongside holding and ordering costs. You’ll learn how the quantity discount model builds on EOQ concepts, how to evaluate supplier price breaks, and how to determine whether ordering more inventory actually lowers total cost. Step-by-step examples demonstrate how to test different price levels, calculate total cost, and identify the optimal order quantity. 👉 Get Certified (Lean Six Sigma) Watch the full Lean Six Sigma playlist, then complete your certification at OperationsUniversity.org to earn your Lean Six Sigma certificate. 💰 Advance Your Credentials Certification & Pricing = Yellow Belt $99 • Green Belt $499 • Black Belt $899 — or all 3 for $1,199 (save when purchasing together). Employer packages: Bulk enrollments & reporting available. 💡 What You’ll Learn in This Video: • What the quantity discount model is and when to use it • How quantity discounts differ from EOQ and EPQ models • How purchase price affects total inventory cost • How to evaluate supplier price break schedules • Quantity discount examples with constant holding costs • Quantity discount examples with holding costs as a percentage 📢 Call to Action ✅ Subscribe for more Lean Six Sigma & operations content ✅ Visit OperationsUniversity.org to get certified ✅ Share this video with your procurement or supply chain team #LeanSixSigma #InventoryManagement #QuantityDiscount #SupplyChain #Procurement #OperationsManagement #ContinuousImprovement