Summary
The pricebreak analysis popup allows you to see details on how StockIQ arrived at your order quantity selection if you have item-level price breaks active. You can access it from the "Edit" menu of the Place Orders screen, in step 2.
The results of the analysis are shown in a grid, and the best option is chosen.
Steps
Price Break Analysis Rules
The price break analysis is done by seeking the lowest average cost-per-unit of each pricebreak level.
As you buy more quantity, you reach higher levels of discounting, so your actual price paid-per-unit goes down.
However, you also begin to incur more and more holding cost, as the larger quantity will sit on your shelf for longer and longer.
StockIQ merges together your cost for purchasing a certain quantity, along with the holding cost for that quantity, and calculates an average cost-per-unit to reach that particular pricebreak threshold. The lowest cost-per-unit, where your cost savings outweigh your holding cost disadvantage, is the level StockIQ will select. This is shown in the Avg Cost Per Unit column in the analysis grid.
You also have the ability to set practical limits on this, such as ensuring that StockIQ will never buy more than a certain days of supply "buyahead", no matter how good the discount may appear.
Grid Columns
In addition to the cost per unit field above, here are the columns shown in the pricebreak analysis grid:
- Start? - Indicates if this was your starting position, e.g. what SIQ wanted to order before any pricebreaks were applied. This can be useful to know if you already reached some particular threshold based on your pure needs or min/max/EOQ stuff.
- Current - Where the current order quantity shows you (in case you have edited the initial recommendation already
- Best - The lowest cost-per-unit that we found.
- Rec'd - StockIQ's recommended purchase quantity with pricebreaks accounted for, taking into account days of supply limits and other rules.
- Over Max Dos? - Indicates if this quantity is above your max days of supply limits, a possible reason why a lower cost-per-unit may not have been selected.
- Qty For Discount - The quantity for discount in terms of the pricebreak measure, e.g. how many units, weight, cubes, etc.
- Measure - What is the measure for the discount, e.g. units, weight, cubes
- Qty For Discount In Units - Your quantity for discount translated into a unit quantity for purchasing.
- Achieved Quantity - What quantity did the targeting automation reach. This can be constrained by minimums, multiples, and any conversion between the discount measure and units.
- Release Quantity - What is the order quantity suggested by the targeting automation to get to this level.
- Discount Amount - What is the discount amount of this discount, e.g. 5%, $2.50, etc.
- Unit Price - what is the resulting unit price at this discount level
- Holding Cost - What is the holding cost for the proposed order quantity at this pricebreak level
- Cost of Ordering - Cost of ordering this qty
- Total Cost - Total cost of this purchase, plus holding, plus cost of ordering
- Avg Cost Per Unit - Total cost per unit to buy at this quantity. This is what SIQ seeks to minimize in the analysis (see above)