Simulation, a Very Powerful Computer-Based Capstone Project

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The product to be discontinued is however X6 due to its low ROI.

1/2/2014 input decisions for 2014

The performance of the 3 products still indicates a periodic variation over the 5 years. The customers would pay more for the product X7 than for the rest of the products in the same category. The X7 sales are noted to be in the growth phase of the product lifecycle. The X5 is noted to be is lower quality as well as performance than the rest of the products. The product to be discontinued is therefore X5 to its low profitability and ROI.

1/2/2015 input decisions for 2015

The performance of the 3 products still indicates a periodic variation over the 5 years. The customers would pay almost the same price for all the competing products in the same categories. The X6 tablet has fewer features in comparison with X5 and X7. There should be an increase in the R&D allocations for X6 in order in increase its features. The products to be discontinued in X5 and X6 due to their ever reducing level of profitability (signaling continued future losses).

A review of the sales levels of the products over the years

X5

Sales

The sales of the product X5 saw a considerable variation over the 5 years.

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The sales would continuously increase to 2145622 and then see a sudden reduction to 614026. This reduction in the sales figures can be attributed to the various changes in market saturation over the last years.

X6

Sales

The sales of the product X6 also saw a continuous rise from $562,961 to its highest figure of $2,364,061 then a sharp decline to $1,118,142. Its sales performance can be improved in 2012 by engaging a futuristic design.

X7

Sales

The sales of product X7 saw a continuous rise from $0 to $479,827 (in 2015).very little should be done to the design of this product 2012 since it already has a futuristic design element.

Implications

A review of the performance and sales figures indicates that it is better to dedicate higher levels of R&D allocations to products that have good sales and performance but with little futuristic design. It is necessary for the ROI to be considered before deciding on the actual product to be discontinued within a certain year.X5 and X6 are however the products to be discontinued in general terms (beyond 2015 and 2016) due to their apparent trend of losing its appeal/sales to the public......

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