100 is the example result. Read it using the units and relationship stated below.
Supplier Comparison uses units in each order, a unit price, a total freight.
Balancing availability against cash tied up in stock
For supplier comparison, the relationship is Result = [Units in each order] × ([B unit price] − [A unit price]) + [B total freight] − [A total freight]. The amount depends on the supplied units in each order, a unit price, rather than a live market price or a value imported from another record. An inventory decision must connect demand, lead time and the cost of holding goods. Buying more can reduce ordering frequency but ties up cash and storage. A stock ratio is useful only when its demand period is clear.
What the model includes
Result = [Units in each order] × ([B unit price] − [A unit price]) + [B total freight] − [A total freight] Use purchase and sales records from a comparable period. Separate regular consumption from a promotion or one-off order; otherwise a reorder assumption can carry a temporary spike into the next purchasing cycle. Check supplier pack sizes, minimum quantities and delivery reliability before turning a calculated amount into an order. The model does not measure deterioration, seasonality or the cost of a stockout unless those inputs are present.
Example with the supplied inputs
Units in each order: 500; A unit price: 20; A total freight: 100; B unit price: 19; B total freight: 700. Result: 100. The values are illustrative.
Compare one changed input
Units in each order changes from 500 to 550. The result becomes 50. All other inputs remain fixed.
Calculation rule
Result = [Units in each order] × ([B unit price] − [A unit price]) + [B total freight] − [A total freight]
Inputs and output
| Input | Example value | Entry convention |
|---|---|---|
| Units in each order | 500 | Use the source quantity represented by units in each order. Keep the counted population fixed and avoid mixing a unit value with a period total. |
| A unit price | 20 | Use a unit price on the currency and period basis shown by the formula. Keep gross amounts, net amounts and unit amounts distinct; the page does not fetch a price or exchange rate. |
| A total freight | 100 | Use the source quantity represented by a total freight. Keep the counted population fixed and avoid mixing a unit value with a period total. |
| B unit price | 19 | Use b unit price on the currency and period basis shown by the formula. Keep gross amounts, net amounts and unit amounts distinct; the page does not fetch a price or exchange rate. |
| B total freight | 700 | Use the source quantity represented by b total freight. Keep the counted population fixed and avoid mixing a unit value with a period total. |
Output: 100 is the example result. Read it using the units and relationship stated below. Use the formula to distinguish a cash amount, count, percentage or ratio.
How to use the page
Collect the inputs
Gather Units in each order, A unit price, A total freight. Use one period and the units shown in the form.
Run the calculation
Enter the values and select the action. The calculation rule above explains how the inputs produce the result.
Compare a scenario
Change Units in each order on its own, keeping the other inputs fixed. Read both results before changing another assumption.
Worked example
With the example inputs listed above, the result is 100.
Change Units in each order from 500 to 550 while keeping every other value fixed. The result becomes 50. This comparison isolates that input; it does not forecast how other variables will respond.
Check the stated formula, units and limits before using the result in a decision.
Keep the displayed formula, input units and model scope with the result. Corrections or questions can be sent through the request section on this page.
Content updated: October 11, 2026