I would like to use SQL to solve an algebraic equation for market share solving for the quantity of Product 1 to achieve a target market share.
Data:
Target: 35%
Equation: ([Product 1 Quantity] * [Target]) / (([Product 1 Quantity] * [Target]) + ([Product 2] + Product 3] + [Product 4]))
Let x = Target, A = Product 1 Qty, B = sum(Product 2 Quantity, Product 3 Quantity, Product 4 Quantity)
Ax/(Ax+B) = 0.35 or 300x / (300x + 700) = 0.35
Simplify:
3x / 3x + 7 = 0.35
Multiply both sides by 3x+7:
3x = 0.35(3x + 7)
Multiply both sides by 100
300x = 35(3x + 7)
Expand 35(3x + 7)
300x = 105x +245
Move to left
195x = 245
Solve
x = 49/39
Current: Product 1 has a quantity of 300 of the 1,000 total quantity or 30%. What I am trying to solve, what is the total additional quantity needed of Product 1 to achieve 35%? Keep in mind an increase of Product 1 also increases the total quantity.
How can this be solved using MSSQL? Any other suggestions? Greatly appreciate any help! Thank you.
Here's a slighly different version:
DECLARE @target NUMERIC(9,2) = 0.35
, @A INT
, @B INT
, @TARGET_COEFF NUMERIC(19, 9)
SELECT @A = MAX(CASE WHEN Product = 'Product1' THEN Quantity END)
, @B = SUM(CASE WHEN Product <> 'Product1' THEN Quantity END)
FROM
(
VALUES (N'Product1', 300)
, (N'Product2', 200)
, (N'Product3', 200)
, (N'Product4', 300)
, (N'Total', 1000)
) t (Product,Quantity)
WHERE Product <> 'Total'
/*
Ax / (Ax + B) = 0.35
Ax = 0.35 * Ax + B * 0.35
Ax - 0.35Ax = B * 0.35
0.65Ax = B * 0.35
x = B * @target / (( 1 - @target) * A)
*/
SELECT @TARGET_COEFF = @B * @target / ((1 - @target) * @A)
SELECT @TARGET_COEFF AS coeff, @A * @TARGET_COEFF AS new_quantity, @A * @TARGET_COEFF - @A AS needed
, @A * @TARGET_COEFF / (@B + @A * @TARGET_COEFF) AS verification
I included inside the transformation of the equation so you get x by itself as well as some verification. Most important thing is that you transform your equation correctly.
Output:
coeff | new_quantity | needed | verification |
---|---|---|---|
1.256410256 | 376.9230768 | 76.9230768 | 0.34999999 |