The dependency diagram demonstrates thatPrice for Circle (Ps), Price for Stall (Pc) and Days to Show (t) are three primary input variables;any change tothese variables will lead to a change in the demand for each type of ticket, ticket sales and profit. In addition, it has been decided that thevariable cost per personand the fixed cost forboth circle and stallsshould be input variables, in order that the model is suitable for more general use.The diagram demonstrates that variable costsper person will need to be summed daily and deducted from revenue in order to calculate profit for each day.The fixed costs for both circle and stalls will be deducted at the end of the simulation.
The demand for Circle and Stalls can be estimated byPc, Psand days to show using the demand formulae, the model’s key parameter. To ensure that the model can be used for shows in different theatres, the number of seats available at the start (for both the circle and the stalls) willalso need to be designated as an input variable. The number of remaining seats can then be obtained by deducting the number of ticket sales from the number of seatsavailable at the start ofeach day.
It is evident thatappropriate formulae will be required to manage demand and availability. In particular we will need to ensure that that ticket sales cannot exceed the number of seats available on any given day.