Estimate Price Elasticity

Explanation

Use this function to estimate price elasticit, to perform a Delphi Methodology to find out the Price elasticity of the Part.

It is calculated as follows:

E = P2 - P1 x     V1     
          P1         V1 - V2
                                                             

where  E  = Estimated Elasticity
          P1 = Price 1 (the price for the part at the first volume situation)
          P2 = Price 2 (the price for the part at the second volume situation)
          V1 = Volume 1 (the volume for the part at the first volume situation)
          V2 = Volume 2 (the volume for the part at the second volume situation)

Prerequisites

The total cost must be calculated.

System Effects

No system effects.