Price Determination via Supply Gap

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Sandra
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Posts: 9
Joined: Mon Aug 29, 2016 12:41 pm
Vensim version: DSS

Price Determination via Supply Gap

Post by Sandra »

Hi,
my model should generate following behavior:
If there is a supply gap > 0 (it means demand > production) then the price should increase by a fixed value for the next two years (also if the supply gap will be negative in the following years; this should be not considered in the price change rate)

For Example:
At time 2: Supply Gap > 0 -> decision to increase price
At time 3: Supply Gap < 0 -> decision to decrease price
At time 4: Supply Gap <0 -> decision to decrease price
-> What I want: Price should increase between time 2 and time 4

Can you please help me with my problem?
Thanks in advance,
Sandra
Administrator
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Re: Price Determination via Supply Gap

Post by Administrator »

The IF THEN ELSE function should do what you want.
Advice to posters seeking help (it really helps us to help you)
http://www.ventanasystems.co.uk/forum/v ... f=2&t=4391

Units are important!
http://www.bbc.co.uk/news/magazine-27509559
Sandra
Junior Member
Posts: 9
Joined: Mon Aug 29, 2016 12:41 pm
Vensim version: DSS

Re: Price Determination via Supply Gap

Post by Sandra »

Using for example "IF THEN ELSE(supplyGap >0, +200, -100)" would increase the price at time 2 BUT at time 3 (when supplyGap < 0) this condition will not allow the price to increase further. But I want to force the price increasing up until time 4 (even though the supplyGap is smaller than zero in this time period).
Administrator
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Joined: Wed Mar 05, 2003 3:10 am

Re: Price Determination via Supply Gap

Post by Administrator »

Maybe a combination of IF THEN ELSE and SAMPLE IF TRUE?
Advice to posters seeking help (it really helps us to help you)
http://www.ventanasystems.co.uk/forum/v ... f=2&t=4391

Units are important!
http://www.bbc.co.uk/news/magazine-27509559
tomfid
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Joined: Wed May 24, 2006 4:54 am

Re: Price Determination via Supply Gap

Post by tomfid »

Another option would be to use a level to store the time at which the price increase started.

This seems like unrealistic logic for a real firm. Is this for some kind of discrete game decision or something like that?
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