# Decide whether a volume discount or MOQ is worth accepting

Weighs unit savings against carrying cost, cash, storage, and obsolescence risk to find the order quantity that actually saves money.

- Topic: Data & Analysis
- Framework: Few-Shot
- Level: Standard
- Tags: Fill-in Template
- Source: https://www.thinkwithprompt.com/prompts/decide-whether-a-volume-discount-or-moq-is-worth-accepting

## Prompt

```text
Help me decide whether to accept a supplier's minimum order quantity (MOQ) or volume price break.

**Item:** [PART OR SKU, SHELF LIFE OR OBSOLESCENCE RISK]
**Demand:** [AVERAGE MONTHLY USAGE, HOW VARIABLE, FORECAST CONFIDENCE]
**Price options:** [e.g. "$4.20 at 1,000 units, $3.80 at 5,000, $3.50 at 10,000"]
**Ordering cost:** [COST PER ORDER - admin, freight, receiving, inspection]
**Carrying cost rate:** [e.g. 20-25% per year - cost of capital, storage, insurance, shrink]
**Storage constraints:** [SPACE AVAILABLE, EXTRA STORAGE COST]
**Cash constraints:** [BUDGET OR WORKING CAPITAL LIMITS, PAYMENT TERMS]
**Lifecycle risk:** [ENGINEERING CHANGES COMING? PRODUCT END-OF-LIFE?]

Steps:
1. Calculate the economic order quantity at each price break and the total annual cost (purchase + ordering + carrying) for each option.
2. Show months of supply each option creates and compare it to shelf life and lifecycle risk.
3. Estimate the obsolescence exposure if demand drops by a scenario I choose (default 30%).
4. Check cash and storage feasibility.
5. Suggest negotiation alternatives: same price with scheduled releases (blanket order), supplier-held stock, consignment, or a split delivery.

Use only my numbers; show formulas; mark assumptions [ASSUMPTION].

Return:
1. A comparison table: Option | Order qty | Months of supply | Annual total cost | Cash tied up | Obsolescence exposure.
2. The recommended option and the conditions that would change it.
3. A short message to the supplier proposing my preferred structure.
```

## What to fill in

- PART OR SKU, SHELF LIFE OR OBSOLESCENCE RISK
- AVERAGE MONTHLY USAGE, HOW VARIABLE, FORECAST CONFIDENCE
- e.g. "$4.20 at 1,000 units, $3.80 at 5,000, $3.50 at 10,000"
- COST PER ORDER - admin, freight, receiving, inspection
- SPACE AVAILABLE, EXTRA STORAGE COST
- BUDGET OR WORKING CAPITAL LIMITS, PAYMENT TERMS
- ENGINEERING CHANGES COMING? PRODUCT END-OF-LIFE?
- ASSUMPTION

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