revenue_max: revenue_max

In inventorize: Inventory Analytics, Pricing and Markdowns

revenue_max

Description

maxmizing revenue based on chage in price and elasticity.

Usage

revenue_max(salesP1, salesP2, priceP1, priceP2, na.rm = TRUE)

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.
na.rm	logical with a default of TRUE

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. a proposed optimum price is given to period 3 which is future period to maxmize revenue.

Value

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

Author(s)

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

Examples

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

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