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)
The total cost must be calculated.
No system effects.