Hi SCHMID6SIG.
I’ll try to explain it with two exapmles, one for a drug and another for an ingredient.
The explanation is extense, but it’s been carefuly detailed. Don’t get overwhelmed and proceed calmly. Be sure to understand what’s going on before going any further.
Let’s start with an ingredient example.
Basic cost: 50
Basic demand: 100%
Oversaturation: 0%
Net demand: 100%
Saturation: 60%
Bought last month: 45
Upgrades: 0
Actual cost: 50
Net demand depends on 2 variables: Oversaturation and Basic demand.
Basic demand is an independant variable which changes along the time, and represents demand of non-pharmaceutical business for that ingredient, so this value has nothing to do with your competitors or your activity.
Oversaturation is a dependant variable. When saturation rises over 100%, this variable will begin to rise, increasing the cost of the ingredent. At the same time, saturation depends on the ingredents bought last month, by you or your competitors.
Let’s suppose 3 months has passed by, and the variables now are the following ones:
Basic cost: 50
Basic demand: 110%
Oversaturation: 0%
Net demand: 110%
Saturation: 60%
Bought last month: 45
Upgrades: 0
Actual cost: 55
Net demand has increased because non-pharmaceutical business are buying more of it. Becouse of that, the actual cost has increased.
Now, we will supose tah in that same time, you built 2 more productive lines at full activity.
Basic cost: 50
Basic demand: 110%
Saturation: 140%
Oversaturation: 10%
Net demand: 120%
Bought last month: 105
Upgrades: 0
Actual cost: 60
¿What happened this time? More ingredients are being bought, so saturation has increased. Since saturation is above 100%, net demand is increased due to oversaturation.
Right now, this ingredient is very expensive, and you buy a lot of it, so let’s improve it.
Basic cost: 50
Basic demand: 110%
Saturation: 140%
Oversaturation: 10%
Net demand: 120%
Bought last month: 105
Upgrades: 2
Market price: 60
Actual cost: 48
Now, that’s better. This time I specified the “Market cost” so it’s clearer to see how the upgrades affects the cost.
So, let’s recap.
Basic demand varies over the time, and saturation depends on how much ingredients are bought. Plus, when saturation goes above 100%, net demand increases due to oversaturation. This will mark the market price of the ingredient. Then, when we upgrade an ingredient, a discount is applied over the market price.
Now, is time for the drug example.
Healing effect base value: 100
Basic demand: 100%
Cures sold: 30
Saturation: 40%
Oversaturation: 0%
Net demand: 100%
Healing effect value: 100
Combined value (pills): 120
Cure rate: C
Selling price: 120
Basic demand on drugs are more tricky. It depens in how many people is suffering the illness we are treating. Some of them increases based on how many people is infected and decreases based on how many people is cured, some others varies depending on the time of the year, and some others do not vary at all. For the example, we will supouse that the basic demand does not vary.
Saturation and oversaturation follows the same basics than before, but regarding cures sold.
Let’s supouse we build two more productive lines at full activity.
Healing effect base value: 100
Basic demand: 100%
Cures sold: 90
Saturation: 120%
Oversaturation: -5%
Net demand: 95%
Healing effect value: 95
Combined value (pills): 115
Cure rate: C
Selling price: 115
We oversaturated the market selling more drugs than demanded, so it will cause the net demand to decrease.
Now let’s supouse we improve our line producton, increasing the cure rate.
Healing effect base value: 100
Basic demand: 100%
Cures sold: 90
Saturation: 120%
Oversaturation: -5%
Net demand: 95%
Healing effect value: 95
Combined value (pills): 115
Cure rate: A (+20%)
Selling price: 138
So, let’s recap.
Basic demand varies or not depending on the type of illnes, so keep a look over the affected people. Saturation depends on how much cures are sold . Plus, when saturation goes above 100%, net demand decreases due to oversaturation. This will mark the price of the cure. Then, depending on the cure rate, an increase or a decrease will be applied over the combined value.
Now, an extra lesson. Let’s supouse a medicine with 2 cures:
Cure 1
Healing effect base value: 100
Basic demand: 72%
Cures sold: 90
Saturation: 108%
Oversaturation: -2%
Net demand: 70%
Healing effect value: 70
Combined value (pills): 90
Cure rate: A (+20%)
Selling price: 108
Cure 2
Healing effect base value: 400
Basic demand: 140%
Cures sold: 45
Saturation: 68%
Oversaturation: 0%
Net demand: 140%
Healing effect value: 540
Combined value (pills): 560
Cure rate: A (+20%)
Selling price: 672
Drug
Cure 1 value: 70
Cure 2 value: 540
Combined value (pills): 630
Cure rate: A (+20%)
Selling price: 756
When separate: 780
Let’s perform a change on the basic demand of each cure…
Cure 1
Healing effect base value: 100
Basic demand: 107%
Cures sold: 90
Saturation: 108%
Oversaturation: -2%
Net demand: 105%
Healing effect value: 105
Combined value (pills): 125
Cure rate: A (+20%)
Selling price: 150
Cure 2
Healing effect base value: 400
Basic demand: 120%
Cures sold: 45
Saturation: 68%
Oversaturation: 0%
Net demand: 120%
Healing effect value: 480
Combined value (pills): 500
Cure rate: A (+20%)
Selling price: 600
Drug with both cures
Cure 1 value: 105
Cure 2 value: 480
Combined value (pills): 605
Cure rate: A (+20%)
Selling price: 726
When separate: 750
So, conclusions on this last experiment: combining cures on a same drug may increase their combined value, but that doesn’t means that we will earn more profit.
However, let’s check this other combination
Cure 1
Healing effect base value: 100
Basic demand: 107%
Cures sold: 90
Saturation: 108%
Oversaturation: -2%
Net demand: 105%
Healing effect value: 105
Combined value (pills): 125
Cure rate: A (+20%)
Selling price: 150
Cure 2
Healing effect base value: 400
Basic demand: 120%
Cures sold: 45
Saturation: 68%
Oversaturation: 0%
Net demand: 120%
Healing effect value: 480
Combined value (pills): 500
Cure rate: C
Selling price: 500
Drug with both cures
Cure 1 value: 105
Cure 2 value: 480
Combined value (pills): 605
Cure rate: B+ (+15%)
Selling price: 707’25
When separate: 650
When combining a C high value cure with an A low value cure, we get more profit than selling them separetly because of the increment on the average cure rate of the drug. Interesting, isn’t it?
Well, I hope your doubts have been solved.
If you have any other question or need any further aclaration, don’t hesitate to ask.