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MS-241 Dynamic Costs v05

[Market Simulation] MS-241 Dynamic Costs
Market Simulation (MS-241) - Dynamic CostsDynamic Costs mean the incremental Cost of making and selling a Productcan change. For example, the Cost To Make (CTM) a Product can decreasewith scale as production volume increases. And the Cost To Serve (CTS)some Customers may be greater than the CTS of other Customers. Competitive Story:Cogswell Cogs and Jetson Gears manufacture and sell Products at a Static Costto them of $50 per unit regardless of how many Products they sell and to whom.Spacely Sprockets, on the other hand, experiences Dynamic Costs. Each unit theymanufacture has a fixed Static Cost of $10 plus a diminishing Cost To Make (CTM).This diminishing CTM starts at $20 per unit and would reach $0 per unit if they soldto 100% of Customers. In addition, they experience a dynamic Cost To Serve (CTS)having a Mean = $20 but varying randomly by Customer. Customers have a similarWillingness To Pay (WTP) foreach Product. But the per-unitStatic Cost for Spacely Sprocketsis different to the others. Verify COGS =Static Cost +Total CTM +Total CTS Spacely Sprockets alsoexperiences two types ofDynamic Costs:1. Cost To Make (CTM), and2. Cost To Serve (CTS). Line Chart: Spacely Sprockets'Cost To Make (CTM) diminishesexponentially, but their Cost ToServe (CTS) differs randomly forevery Customer. The total Cost of Goods Sold(COGS) automatically takes intoaccount both Static Costs andDynamic Costs. Spacely Sprockets total StaticCost = unit Static Cost x Quantityof units sold Total Cost To Make (CTM) iscalculated by filtering the top-Nrows, where N = Number ofCustomers who PurchasedSpacely Sprockets. Total Cost To Serve (CTS) iscalculated by filtering each CTSrow for the individual Customerswho Purchased SpacelySprockets. Cost of Goods Sold (COGS) iscalculated by summing the StaticCost as well as both types ofDynamic Cost.InputProduct ArrayValueMatrixDynamicCostsCostMatrixCost To Make (CTM)Cost To Serve (CTS)PredictSprocketMarketPurchasedSpacely SprocketsPurchasedRowIDSpacely SprocketsCTSSpacely SprocketsCTMCost To MakeCTMQuantityRowsStaticCostSpacelySprocketsSpacely SprocketsStatic CostSpacely SprocketsTotal CTMSpacely SprocketsTotal CTSCostTypeStatic CostTypeTotal CTMTypeTotal CTSCostCostSpacely SprocketsTotal CostWTPMatrixSpacely SprocketsStatic CostTotal CTMTotal CTSCostAllocationPurchased CountFlow Variable Table Creator MatrixDistributions Table Creator CustomerDistributions Line Chart(JFreeChart) Simulate Market Row Filter RowID Column Filter Row Filter Column Filter Math Formula Math Formula Row Filter Column Filter GroupBy GroupBy Column Rename ConstantValue Column ConstantValue Column ConstantValue Column Column Rename Column Rename GroupBy Column Appender Concatenate GroupBy Bar Chart(JFreeChart) Table Columnto Variable Market Simulation (MS-241) - Dynamic CostsDynamic Costs mean the incremental Cost of making and selling a Productcan change. For example, the Cost To Make (CTM) a Product can decreasewith scale as production volume increases. And the Cost To Serve (CTS)some Customers may be greater than the CTS of other Customers. Competitive Story:Cogswell Cogs and Jetson Gears manufacture and sell Products at a Static Costto them of $50 per unit regardless of how many Products they sell and to whom.Spacely Sprockets, on the other hand, experiences Dynamic Costs. Each unit theymanufacture has a fixed Static Cost of $10 plus a diminishing Cost To Make (CTM).This diminishing CTM starts at $20 per unit and would reach $0 per unit if they soldto 100% of Customers. In addition, they experience a dynamic Cost To Serve (CTS)having a Mean = $20 but varying randomly by Customer. Customers have a similarWillingness To Pay (WTP) foreach Product. But the per-unitStatic Cost for Spacely Sprocketsis different to the others. Verify COGS =Static Cost +Total CTM +Total CTS Spacely Sprockets alsoexperiences two types ofDynamic Costs:1. Cost To Make (CTM), and2. Cost To Serve (CTS). Line Chart: Spacely Sprockets'Cost To Make (CTM) diminishesexponentially, but their Cost ToServe (CTS) differs randomly forevery Customer. The total Cost of Goods Sold(COGS) automatically takes intoaccount both Static Costs andDynamic Costs. Spacely Sprockets total StaticCost = unit Static Cost x Quantityof units sold Total Cost To Make (CTM) iscalculated by filtering the top-Nrows, where N = Number ofCustomers who PurchasedSpacely Sprockets. Total Cost To Serve (CTS) iscalculated by filtering each CTSrow for the individual Customerswho Purchased SpacelySprockets. Cost of Goods Sold (COGS) iscalculated by summing the StaticCost as well as both types ofDynamic Cost.InputProduct ArrayValueMatrixDynamicCostsCostMatrixCost To Make (CTM)Cost To Serve (CTS)PredictSprocketMarketPurchasedSpacely SprocketsPurchasedRowIDSpacely SprocketsCTSSpacely SprocketsCTMCost To MakeCTMQuantityRowsStaticCostSpacelySprocketsSpacely SprocketsStatic CostSpacely SprocketsTotal CTMSpacely SprocketsTotal CTSCostTypeStatic CostTypeTotal CTMTypeTotal CTSCostCostSpacely SprocketsTotal CostWTPMatrixSpacely SprocketsStatic CostTotal CTMTotal CTSCostAllocationPurchased CountFlow VariableTable Creator MatrixDistributions Table Creator CustomerDistributions Line Chart(JFreeChart) Simulate Market Row Filter RowID Column Filter Row Filter Column Filter Math Formula Math Formula Row Filter Column Filter GroupBy GroupBy Column Rename ConstantValue Column ConstantValue Column ConstantValue Column Column Rename Column Rename GroupBy Column Appender Concatenate GroupBy Bar Chart(JFreeChart) Table Columnto Variable

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Created by: Berlin
Created at: 2019-04-03
On NodePit since: 2021-02-05
Last update: 2024-04-27
Created with KNIME version: v4.3.0

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