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Hi guys,
I wonder if someone could help me with my issue or perhaps there is an equation/algorithm I am not aware of. (I think it's probability but I have tried and still can't use that to work it out).
I am currently working on a business idea and I am trying to calculate how often new stock would need to be bought, but I just can't seem to work it out as there are a number of different variables.
The business idea is a subscription-based rental business, similar to the Netflix business model but the products are physically delivered to homes. Customers will pay a monthly subscription and be able to rent out a product for as long as they like, although I estimate the average turnaround time will be 10 days, therefore 3 rentals a month.
I have determined that I will start with a stock quantity of 12 different types of products with 3 of each and I have also predicted that the product itself will be capable of rental 18 times before it requires writing off/replacing.
Is there a way I can make a calculated prediction of the minimum amount of days/weeks before a product needs replacing, such as an equation or algorithm.
To summarise, I need an equation for calculating when replacements of products are required, i.e. the average amount of time based on x amount of customers.
x amount of customers.
36 products in total to start.
an average of 3 product rentals a month.
product lifespan of 18 rentals.
amount of days before product requires replacing = ?
I really hope someone can help with an equation, I would very much appreciate it!
Kind Regards,
Calum
I wonder if someone could help me with my issue or perhaps there is an equation/algorithm I am not aware of. (I think it's probability but I have tried and still can't use that to work it out).
I am currently working on a business idea and I am trying to calculate how often new stock would need to be bought, but I just can't seem to work it out as there are a number of different variables.
The business idea is a subscription-based rental business, similar to the Netflix business model but the products are physically delivered to homes. Customers will pay a monthly subscription and be able to rent out a product for as long as they like, although I estimate the average turnaround time will be 10 days, therefore 3 rentals a month.
I have determined that I will start with a stock quantity of 12 different types of products with 3 of each and I have also predicted that the product itself will be capable of rental 18 times before it requires writing off/replacing.
Is there a way I can make a calculated prediction of the minimum amount of days/weeks before a product needs replacing, such as an equation or algorithm.
To summarise, I need an equation for calculating when replacements of products are required, i.e. the average amount of time based on x amount of customers.
x amount of customers.
36 products in total to start.
an average of 3 product rentals a month.
product lifespan of 18 rentals.
amount of days before product requires replacing = ?
I really hope someone can help with an equation, I would very much appreciate it!
Kind Regards,
Calum
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