User guide on COD operation
Clicking the button 'Optimal Discount Menu Calculation' on the Home page opens the Input Base Values Block. In this case, the User must keep in mind the following:
● Base values for Discount System optimization are entered manually from the computer keyboard.
● If the User wants just to get an idea of the COD possibilities, one can use the base values of the Basic Example, loaded by default into the computing program.
● To solve your own problem of Discount System optimization, you need to replace the numbers in the corresponding input fields of the Basic Example with your own. (If the entered number of discounts I in the Discount System is less than the maximum allowable (ten), then it is enough to change the values in the Input Data Table up to the I-th row inclusively, since the table rows with large numbers will not be read and will be disregarded in calculations).
● If numeric values are not entered in the input data fields, the program interprets these values as zero.
● If you enter a positive value for the prime cost S, the contribution margin is optimized. If you do not enter a prime cost value, i.e. by default it is zero, gross revenue is optimized.
● The upper limit of the validity range of the previous in magnitude discount in the Discount System coincides with the lower limit of the validity range of the next in magnitude discount.
● The accuracy of the calculation model is limited by the conditions of a snowballing growth of demand for a product with a decrease in its unit cost, as well as by cases of a snowballing increase in the value of the discount lower range value of the Discount System. These cases are determined by the ratios of intermediate calculated parameters and are identified in the process of calculations. A message about it is displayed on the monitor screen and the calculation process stops.