Quantity Discounts from Supplier


Quantity discounts are very common for goods of all types, whether retail, wholesale, or industrial. Although there are many different types of quality discount procedures employed, there are two that are the most important: all-units and incremental. In both cases there are one or more quantity break-points, defining changes in the unit cost. The all-units case simply applies the discount effective in an interval to all units of the order; the incremental method applies the discount only to the units past the breakpoint. In either case, we wish to minimize an average cost function which is smooth on an individual interval but changes for the next interval. Thus, we may simply minimize costs on each interval, and choose the minimum of these. In turn, on each segment, the minimum occurs.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Mobilizing Support


Mobilizing support for change requires a blend of logic, emotions, and values. The change managers should:

  1. Developing clarity about the target audience: in an effort to achieve acceptance of any change idea, it is very important to clearly understand who the relevant stakeholders are, what are their identities, their aspirations, their values, and their influence in the organization. The target audience is never homogeneous group. These would be people who may be ready to support the change ideas quickly, people who oppose change no matter how sensible the ideas are, and people who are willing to listen but should not be taken for granted. A change manager should identify the real interests of these sub-groups and should tailor the communication and persuasion effort accordingly. In other words, the change manager should be sensitive to the fact that there would be multiple views and perceptions in an organization and it is important to be clear as to what these are.
  2. Getting people involved: When a change manager begins the change campaign by making a strong presentation and supporting it with huge data, there is a danger that employees at the receiving end may become mere spectators and skeptics. At the same time, it is not realistic to expect that people would volunteer themselves to engage in defining a change initiative. What is most useful in such a situation is ‘foot in the door’ approach. This involves asking people to make a small initial commitment, which may be in the nature of asking their views on the present situation and discussing possible courses of action. Over a period of time, these small commitments could be extended to sustain larger change objectives. This approach is particularly useful to attract skeptics to the change program.
  3. Crafting the message: A primary process in the influence effort is not change in attitude towards an object, but change in definition and meaning of the object. Once meaning changes, attitudes change accordingly. A change manager should present the idea in such a manner that it evokes sufficient curiosity among members to explore it further. The message should be simple, but clear enough in its scope. Rather than a conclusive statement, it should invite people for a dialogue. People tend to be more attracted towards stories and symbols than hard numerical data. A change manager should be able to make use of these soft dimensions of relationships to gain attention to the change idea.
  4. Timing the campaign: Many ideas are rejected because they are presented at a wrong time. A change manager should first use informal meetings to generate the need for improving present levels of performance and make people receptive to new suggestions. Change ideas should be presented only when people are willing to engage in a dialogue process. This is very similar to a gardener first preparing the soil before sowing the seeds.
  5. Sustaining the momentum: Mobilizing support for change is never a one-time activity. It takes considerable amount of time to get people involved and committed to the change idea. It should be best for people with high expertise and credibility to lead the change. People listen to those who have expertise while framing their position. Then those people should be identified who favor the change idea and they should be helped to articulate their views in public. People tend to stick to their positions that are made in public

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight