Submitted by: Submitted by trueworld
Views: 86
Words: 595
Pages: 3
Category: US History
Date Submitted: 11/26/2013 08:54 AM
Cost per unit under the old system is flat regardless of number of units ordered. However, under the new system, the cost per unit is about the same as they are for the old system for orders greater than 10. But 74% of the orders have less than 5 units resulting in very disproportionate numbers. Thus, the new system more accurately represents to true cost of fulfilling each order. Siemens should discourage small orders and incent customers to order in quantities greater than 10 to reduce per unit costs through premium pricing small orders and/or discounting larger orders.Cost per unit under the old system is flat regardless of number of units ordered. However, under the new system, the cost per unit is about the same as they are for the old system for orders greater than 10. But 74% of the orders have less than 5 units resulting in very disproportionate numbers. Thus, the new system more accurately represents to true cost of fulfilling each order. Siemens should discourage small orders and incent customers to order in quantities greater than 10 to reduce per unit costs through premium pricing small orders and/or discounting larger orders.Cost per unit under the old system is flat regardless of number of units ordered. However, under the new system, the cost per unit is about the same as they are for the old system for orders greater than 10. But 74% of the orders have less than 5 units resulting in very disproportionate numbers. Thus, the new system more accurately represents to true cost of fulfilling each order. Siemens should discourage small orders and incent customers to order in quantities greater than 10 to reduce per unit costs through premium pricing small orders and/or discounting larger orders.Cost per unit under the old system is flat regardless of number of units ordered. However, under the new system, the cost per unit is about the same as they are for the old system for orders greater than 10. But 74% of the orders have less than 5 units resulting in...