Challenge Dec-2024

Pricing Policy                                                                                Solutions

A company sells Standard and Premium products manufactured in different countries. It uses a mixed bracket volume and cost policy for orders with multiple units:

  • 1-99 units: $10 per unit (Standard), $15 per unit (Premium)
  • 100-499 units: $9 per unit (Standard), $14 per unit (Premium)
  • 500+ units: $8 per unit (Standard), $13 per unit (Premium)

For products that originated not in the US or Canada, there is a handling fee of $50 per order. If the order includes hazardous material, the total price should be increased by 30%.

Here is an example of the order:

  • 200 Premium products originated in Germany with hazardous materials
  • 50 Standard products originated in the US without hazardous materials
  • 200 Premium products originated in the Canada without hazardous materials
  • 150 Standard products originated in China with hazardous materials.

Use your favorite tool to create a decision model capable of addressing this or more complex sales policies. Send your solutions to DecisionManagementCommunity@gmail.com.

Solutions: