Sales Scenario Evaluation

Sales scenario evaluation considers the impact of sales prices, sales flexibility and elasticity on volumes and values. Initially, sales prices are varied starting from a basis plan and consider the impact on volumes and values shown in fig. 86. 

It has been approximately 5 years since the European law on chemicals REACH came into force. It was implemented to audit the risks of all chemicals on the market by their sales volume and hazardousness. The essential aim of this security check is to determine so-called exposure scenarios, which facilitates the assessment of the occurrence of unacceptable or dangerous exposure created by the evaluated chemical. If these risks are identified, measures are to be taken to reduce the exposure by restrictions on usage or by issuing a ban. 

The model has been evaluated by means of a global commodity industry case. The evaluation proved the importance of value chain planning to integrate volume and value decisions from sales to procurement exchange rate, sales and raw material price and elasticity scenarios have key influences on total profit and volume planning decisions within the global value chain network. 

---