For best pricing, managers use Konpik’s simulator of price elasticity of demand that helps them price products to anticipate the margin increases. SOLUTIONS MADE POSSIBLE BY KONPLIK’S PRICE-ELASTICITY SIMULATOR 1. Intense cross-price elasticity analysis In the real...
In highly complex and uncertain environments, algorithms are often more accurate than experts. In healthcare, forecasters tend to rely heavily on judgment, despite the inherent bias and inefficiencies. When we evaluate the results of price predictions, demand...
Cross elasticity of demand (XED) calculates the change in the quantity demanded of a good when the price for another good changes. In the previous post, we saw instances of high levels of elasticity in the pharmaceutical industry. In the real world, however, the...
In the pharmaceutical industry, from a price and demand standpoint, all drugs are not created equal. In our daily practice with price elasticity, we find several instances in which drugs show a high level of demand variation whenever there is a change in price. Price...
When the price of medicines rises, does the amount demanded fall? And when the price falls, does the demand rise? The law of supply and demand is arguably one of the most solid tenets of microeconomics. It states that, all other things being equal, when the price of...
Forecast Value Added (FVA) is a metric that evaluates each participant's performance in the forecasting process. It helps decide which adds value and which doesn't. We should not take for granted that all forecasters (both persons and algorithms) add value to a...
Hybrid approaches that blend experts’ forecasts with complex machine learning algorithms are often the best tool for accurate healthcare demand forecasts. Healthcare demand forecasters tend to rely heavily on judgment, despite the inherent bias and inefficiencies...
In the healthcare industry, Artificial Intelligence can dramatically improve the forecasting accuracy of demand estimates. Demand forecasting is an analytics field that attempts to predict customer demand to optimize supply decisions. In the Pharmaceutical industry,...
Predicting the final price of an auction has become an increasingly important area of business improvement for healthcare providers. Manufacturers can obtain a large profit by using previously predicted prices. At Konplik Health, we have over 6 years of experience...
In healthcare tendering, game theory principles are often applied to predict the winning price at a tendering opportunity. In our practice at price-based tendering, we more often than not gather evidence that human decision-making is not governed by rationality. Bidders play very often against their own benefit.