R/CriticalRatio.R

In inventorize: Inventory Analytics, Pricing and Markdowns

#' Criticalratio
#'
#' Calculating critical ratio of a news vendor model under any distribution.this critical ratio maxmizes profit.
#'
#'@param  sellingprice  numeric,selling price of the SKU
#' @param  cost  numeric,cost of the SKU
#' @param  salvage  numeric,,salvage or discounted value if sold after season,if there is no salvage , zero is placed in the argument.
#' @param  penality numeric, peanlity cost of not satisfying demand if any, if not, zero is placed in the argument.
#' @param  na.rm A logical indicating whether missing values should be removed
#' @importFrom stats dnorm
#' @importFrom stats lm
#' @importFrom stats median
#' @importFrom stats optim
#' @importFrom stats optimize
#' @importFrom stats pnorm
#' @importFrom stats ppois
#' @importFrom stats predict
#' @importFrom stats qnorm
#'
#' @return the critical ratio.
#'
#' @author "haytham omar  email: <haytham@rescaleanalytics.com>"
#' @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.
#' @export
#' @examples
#' CriticalRatio(sellingprice=80,cost=60,salvage=45,penality=25,na.rm=TRUE)


CriticalRatio<- function(sellingprice,cost,salvage,penality,na.rm=TRUE){
  (sellingprice-cost+penality)/(sellingprice-cost+penality+cost-salvage)
}