In the quantity discount model, the cost of acquiring goods (product cost) is not a factor in determining lot size.

Quantity Discount Model

A pricing strategy where the price per unit of inventory is lowered when purchases exceed certain quantity thresholds, encouraging larger orders.

Acquiring Goods

The process of obtaining products or commodities for use, resale, or further production.

Lot Size

The quantity of a particular product made or purchased at one time, influencing inventory levels and production planning.