Applying Optimization Method to Deliver Proactive Pricing on Improving Margin Beyond a Cost Plus Strategy

The Dow Chemical Company is a leading chemical manufacturer in the world. Dow manufactures plastics, chemicals, and agriculture products. With a presence in over 150 countries, it employs over 50,000 people worldwide. Price is a function of volume, cost, previous price and external factors. We have provided a dynamic advanced analytical engine that can be coupled with a Product Manager’s current process to maximize margin potential. This tool utilizes Price-volume elasticity while including capacity constraints and necessary external variables defined by the BU product organization.