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Infoveave Learning

Define What-If Scenario

In Infoveave, the What-If tool enables you to explore hypothetical scenarios based on in-hand data. What If in Infoveave consists of two parts: the What If formula and the What If analysis. By defining what-if formulas, you are defining all the contributing variables. Analysis allows for the exploration of various variable combinations and the identification of key drivers and areas for improvement. In general, What If helps you analyze data, identify trends, patterns, and potential risks, thereby supporting more informed decision-making.

Introduction to What-If in Infoveave

What If is a tool used in decision-making and forecasting to explore how changes in variables can affect outcomes. It involves altering one or more input variables to see how such changes impact the result. This analysis helps in understanding the sensitivity of outcomes to different scenarios, thereby aiding in making informed decisions and planning strategies. The process typically involves identifying the key variables that influence the desired outcome, defining formulas to calculate the outcome based on these variables, implementing the formulas in Infoveave, and analyzing the results of different scenarios. Users can easily adjust the values of variables and see real-time changes to the outcomes, enabling them to evaluate various options and make data-driven decisions.

Defining What-If Scenario

As a data analyst for a company, you are tasked with creating a What-If formula to calculate the Manufacturer’s Suggested Retail Price (MSRP) or Recommended Retail Price (RRP) for products. The MSRP/RRP is the price at which the manufacturer recommends the retailer to sell the product.

Scenario Solution

Step 1: Start with identifying the key components/ variables contributing to the scenario.

  • The key contributing components/variables for the scenario are:
    • Shipping Cost: The cost incurred for shipping goods from one location to another.
    • Transit Insurance Percentage: The percentage of the total value of goods that is paid for transit insurance, which covers loss or damage during transit.
    • Transit Insurance Amount: The actual amount paid for transit insurance, calculated as a percentage of the total value of goods.
    • GST Percentage: The Goods and Services Tax (GST) rate applied to the value of goods or services.
    • GST Value: The amount of GST payable, calculated as a percentage of the value of goods or services.
    • Landing Price: The total cost of a product or shipment, including the purchase price, shipping costs, and other expenses incurred until the goods arrive at their destination.
    • Handling Charge: The fee charged for handling goods during transit or at a warehouse.
    • GST Offset: An amount that can be used to offset GST liabilities, such as input tax credits.
    • Dealer Margin Percentage: The percentage of profit added to the cost price by a dealer to determine the selling price.
    • Dealer Margin Value: The actual amount of profit added to the cost price to determine the selling price.
    • Dealer Margin Total: The total profit earned by a dealer on a sale, calculated as the margin value multiplied by the quantity sold.
    • Market Price: The price at which goods or services are typically sold in the market.
    • Market Price Offset Impacts Dealer Margin: The impact of the market price offset on the dealer margin.
    • Dealer Margin Adjustment Amount: An adjustment made to the dealer margin based on various factors.

Step 2: Based on the identified variables define all the formula.

  • Transit Insurance Amount = Transit Insurance Percentage *(Factory Price + Shipping Cost)*
  • GST Value=GST Percentage*(Factory Price + Shipping Cost + Transit Insurance Amount)
  • Landing Price=Factory Price + Shipping Cost + Transit Insurance Amount + GST Value
  • GST Offset= -1*GST Value
  • Market Price=Landing Price + Handling Charge + GST Offset + Dealer Margin Total
  • Dealer Margin Total=Dealer Margin Value + DM Adjustment Amount
  • Dealer Margin Value= IF “Market Price Offset Impacts Dealer Margin” equals 0 return (Dealer Margin Percentage*Market Price) ELSE return Dealer Margin Percentage * (Market Price Offset Impacts Dealer Margin+ Market Price)
  • DM Adjustment Amount= IF “Market Price Offset Impacts Dealer Margin” equals 0 return 0 ELSE return (Market Price + MP Offset Impacts DM) - (GST Offset + Dealer Margin Value + Handling Charge + Landing Price)

Step 3: Implement all identified formulas in Infoveave by assigning proper variables.

  • Assign measures and fixed values for each key component in Infoveave
  • Define expressions for calculating Manufacturing Cost, Packing & Assembly Cost, etc.

Steps 4: Analyze the scenario for various variable combinations in Infoveave.

  • Modify measure and fixed value inputs to observe variations.
  • Generate reports summarizing scenario analysis results for pricing insights.

Conclusion

The What-If tool in Infoveave provides a structured approach to defining and analyzing scenarios. The process begins with identifying key components and variables, followed by the formulation of contributing formulas. These formulas are then implemented in Infoveave, assigning proper variables and expressions. The tool allows for the analysis of various variable combinations, allowing you to observe how changes impact the outcomes of the scenario.