discussion forum :-

1st person:-

One of my responsibilities in my previous role, was calculate risk and return on investment.

i recently worked on a project where I was asked to look at what format should our new products go into. With this project I had to learn the process of both options, build a financial model to show what sales, cost and timing would look like. The analysis included cost curves to show scale up over volume, forecast over years projected and operations impact (including capacity planning). This was all compiled to show break-even points and compare long-term vs short-term gains.

The risk I had to weigh and show in the project included payback in volume and years comparing both product formats, the technical risk of doing either format, and market adaption risk. While one format had long term better payback, it was important to understand what format the market preferred. If we went with the most cost- effective product but couldnt sell it, then we would never achieve the payback we needed. With all things in play, we had to make sure that technical aspects could be accomplished, or the product would not be manufacturable and none of the other considerations mattered.

response to the 1st person's post :- 120-150 words