The pricing analysis centers on how much it cost to produce the sale of products and services. The design of a causal loop diagram help understands the supply and demand for certain makeup and skincare products for domestic sales.
The products in high demand will result in the cost of reaching the suppliers and distributing the product to all Ulta Beauty store locations and being responsible for not overstocking the shelves with less desirable products, not in demand. Customer positive reviews drive the demand for supply and distribution costs.
The Stock and Flow Model assumes supply and demand for Ulta Beauty products sold to foreign locations. The model looks like the following:
The pricing analysis considers the cost from the customer’s purchase online versus the cost of distribution, packaging, and shipment. Inventory must be managed to stock enough products to ship overseas.