At what quantity of lounge chairs does the shipping discount increase to 20%?

Study for the Oracle Order Management (OM) Certification Exam. Prepare with flashcards and multiple choice questions. Understand key concepts and receive explanations for each answer. Boost your confidence and achieve success!

The correct quantity at which the shipping discount increases to 20% is five lounge chairs. In many sales scenarios, tiered discount structures are employed, where the percentage discount increases as the order quantity goes up.

Understanding how discount thresholds work is essential in Order Management. Typically, a company may establish different discount tiers based on the quantity of items ordered. For example, an order may receive a 10% discount up to a certain quantity (like four chairs), and once the customer exceeds that quantity threshold (in this case, five chairs), the discount would increase to 20%.

This incentivizes customers to purchase more items in order to benefit from the higher discount rate, which can lead to larger sales volumes and increased customer satisfaction. Thus, knowing the specific quantity that triggers the different discount rates is critical for accurate pricing and customer communication.

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