elasticity: elasticity

In inventorize: Inventory Analytics, Pricing and Markdowns

elasticity

Description

calculating elasticity of price change.

Usage

elasticity(salesP1, salesP2, priceP1, priceP2)

Arguments

salesP1,	integer, unit sales in period 1.
salesP2	integer unit sales in period 2.
priceP1	numeric, average price of sku in period 1.
priceP2	average price of sku in period 2.

Details

This function is helpful to determine the elasticity of a product with effect to price change, the figure could be negative as the change is price is negative. it translates as for each unit percentage decrease in price , this much is ecpected precentage of increase of sales. condition must be that Price in period one was more than proce in period 2 and sales in period two was more than sales in period 1.

Value

the elasticity ratio in unit sales, the -ve number represents the increase in sales for each decrease of unit currency.

Note

this is the second version of the inventorize package, all the fucntions are without any academic contribution from my side, the aim is to facilitate and ease much of the bookkeeping that is endured during stock analysis.

Author(s)

"haytham omar email: "<[e-mail]>"

Examples

elasticity(salesP1=50,salesP2=100,priceP1=6,priceP2=4)

inventorize documentation built on June 1, 2022, 1:07 a.m.