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EOQ vs Bulk Discount

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › EOQ vs Bulk Discount

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.
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  • June 7, 2021 at 8:15 pm #623755
    AshleyMarc1997
    • Topics: 48
    • Replies: 24
    • ☆☆

    1) Is it true that when calculating BULK discount order we have to compare that with the EOQ order policy to evaluate how much we saved from the BULK discount?

    2) And if we are given more than one order with different quantities being used then we have to calculate each of them individually but in the end, we’ll compare that to the EOQ policy?

    3) Is this the correct way to calculate the Cost of Buffer Stock such as:

    Buffer Stock (units) x Cost of Holding each unit

    Please correct me If I am wrong

    June 8, 2021 at 8:24 am #623828
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49603
    • ☆☆☆☆☆

    Yes to all three 🙂

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