| revenue_max {inventorize} | R Documentation |
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: <haytham@rescaleanalytics.com>"
Examples
revenue_max(salesP1=50,salesP2=100,priceP1=6,priceP2=4)