With Cloud becoming the operating word, many Purchasing Managers have to deal with a variety of contracting types. At a basic level, there are two kinds - subscription contracts and consumption contracts.
Subscription contracts require you to commit to a certain volume upfront for the contracting period. This does not depend on the actual consumption. In contrast, consumption contracts let you pay based on the actual consumption.
On the face of it, it looks like Consumption Contracts are better. However, consumption contracts come at a premium. The question is - how much of the premium is justified for the consumption contracts given certain demand uncertainty?
This is a basic model that lets you understand the dynamics. The demand has uniform distribution between a minimum of 90 and a maximum of 100. Subscription contract is priced at a monetary unit of 100. Consumption contracts command a premium for the flexibility they are offering. You can play with the premium (it is a premium you are paying over 100) by moving on the slide bar and see how the costs of subscription and consumption are shaping up.
Hope you enjoy it.
Consumption Contracts vs Subscription Contracts
http://www.ichakadizes.com/the-secret-of-success-of-any-system
Adizes Formula for Success in Any System: Business Example
The issue is how to select and keep optometry students. The main theme is balance out expectations with reality especially when many students use optometry as a proxy for later entry into a medical course. The second problem is that the current entry demographic does not meet the needs in terms of culture and expected practice location
Clone of optometry student recruitment, training, retention and expectations
This causal loop diagram is the first step in looking at the relationship between business analysis performance and organizational performance. Over time it will be extended by IIBA R&I to form a simulation.
© International Institute of Business Analysis
BAPerformance Systems-Model - Change Requests - no folder
Clone of Clone of Inventory model with delays
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Clone of Impact of variable price on revenue & profit
Causal loop diagram illustrating one of the contributing factors to employee hiring.
Hiring Cycle (1-Loop; Balancing)
DRAFT
a small model of a "generic" company.
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Causal loop diagram based on Jack Homer's Worker burnout: a dynamic model with implications for prevention and control
System Dynamics Review 1985 1(1)42-62
Clone of Burnout Dynamics CLD
Clone of Mortgage Pre-Processing ModelV2
Clone of Grocery Store System - Stock & Flow Diagram/SD Model
Team growth depending on hiring rate, referral rate, departure rate
Team growth
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Clone of Fluktuace ve firmě
reinforcing loop creating price war
Rich picture version of Causal loop diagram based on Jack Homer's paper Worker burnout: a dynamic model with implications for prevention and control System Dynamics Review 1985 1(1)42-62 See IM-333 for the Simulation model and IM-2178 for a related Causal Loop Diagram of Project Turnover
Clone of Burnout Dynamics CLD rich pic
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Clone of The dynamics of R&D
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Clone of Lean Startup Business System
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Clone of Fishery Dynamics with Ship Deployment Policy
This causal loop diagram is the first step in looking at the relationship between business analysis performance and organizational performance. Over time it will be extended by IIBA R&I to form a simulation.
© International Institute of Business Analysis
Clone of Business Analysis Performance Systems Model - Change Requests Causal Loop
Rich picture version of Causal loop diagram based on Jack Homer's paper Worker burnout: a dynamic model with implications for prevention and control System Dynamics Review 1985 1(1)42-62 See IM-333 for the Simulation model and IM-2178 for a related Causal Loop Diagram of Project Turnover
Clone of Burnout Dynamics CLD rich pic
Clone of Inventory model with delays
Rich Picture se zabývá problémem nízké kvality produktů na trhu
nizka_kvalita_produktu
