Engineering Skin Lotions-Abstract

Engineering Skin Lotions-Abstract - Engineering Skin...

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Engineering Skin Lotions Curtis Baade and Shamara Manora Executive Summary In this work we apply a recently proposed methodology for product design to the case of engineering skin lotions, a project inherited from previous years. A consumer satisfaction model is constructed and used to engineer the lotion that maximizes consumer satisfaction. Such a formulation turns out not to be the most profitable formulation. Thus, a pricing model is used to find a formulation that maximizes profit. From the preference model that was created, it was found that a perfect product is economically feasible, however is not the most profitable product that can be produced. A demand model was then created to find a more profitable solution. The demand model maximizes NPW while changing the demand as well as the ingredients and their concentrations. From the demand model the preference was found to be 61% with an ROI of 7700%. This is still higher than the competitor’s preference of 51%. From the risk analysis, it is seen that the demand has the
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This note was uploaded on 08/31/2011 for the course CHE 4273 taught by Professor Staff during the Spring '10 term at Oklahoma State.

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