Simulation of grocery store profits for a single product

Description

The hourly profit made when selling the product at price P and the product is displayed at height H [cm] on the shelf.

Usage

grocery(P=3.46, H=150)

Arguments

Details

This function simulates the hourly profit in a grocery store of selling a particular product.
Two factors can be adjusted by the user to determine the optimum:

• P: The selling price of the product (must be a positive value).

• H: The height that the product is displayed at (must be a positive value).

Can you determine the best combination of conditions, using a systematic method (i.e. not by trial and error)?

Value

Returns the hourly profit made. Random noise is added for some realism.

Author(s)

Kevin Dunn, <kevin.dunn@mcmaster.ca>

References

Please see Chapter 5 of the following book: Kevin Dunn, 2010 to 2015, Process Improvement using Data, http://learnche.org/pid

See Also

popcorn, manufacture

Examples

# Selling at the default settings of price (€3.46) 
# and shelf height (150cm):
grocery()

# Let's try selling for a low price, €2.75, 
# and put the product 120 cm off the ground
grocery(P=2.75, H=120)

# What happens if the product is too high 
# for the average person?
grocery(P=1.25, H=200)

# Can you find the optimum combination of settings to 
# maximize the profit, but using only a few experiments?

Results