This is done in the Customer Demand table. The Price column represents the amount of revenue gained for serving 1 unit of the quantity specified. For example, if Quantity is set at 500,000 and price is set at 1, then this means that $500,000 in revenue is generated. The objective of this Profit Max is to find the sum of all revenue generated minus the sum of all costs associated with serving the demand. To activate Profit Max, you just have to make sure that the price values aren’t null or set to 0. If the price isn’t set high enough, Architect may choose to not serve demand because it isn’t profitable. To prevent this, you can use the Min Quantity column to set a minimum quantity that must be served to customers.
Profit Maximization
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Written by Alex Salb
Updated over a year ago