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JibeRP

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Nov 14th, 2018
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  1. Entitlement allocation for IS:
  2.  
  3. Let's take this example:
  4.  
  5. > IS 1
  6. - Portfolio 1
  7. - Portfolio 2
  8. > IS 2
  9. - Portfolio 3
  10. - Portfolio 4
  11.  
  12. User A is part of IS 1 and portfolio 3,
  13. User B is part of portfolio 4
  14.  
  15. User A has entitlements X and Y and has a user consumption share of 30% on entitlement X and 50% on entitlement Y.
  16. User B has entitlement Y
  17.  
  18. Price of x = 10 000€
  19. Price of Y = 5 000€
  20.  
  21. Entitlement allocation = ∑ % of consumption of the user for the IS * cost of entitlements within the IS
  22.  
  23. % of consumption of the use for the IS = User consumption share of the entitlement * [(# of Portfolios he’s part of in the IS) /
  24. (total # of Portfolios the user is part of)]
  25.  
  26. User consumption share (distribution key) = Unique reports read by user / total # of unique reports read by users in org
  27.  
  28. For user A:
  29.  
  30. His contribution to the Entitlement allocation for Investment Strategy 1 will be
  31. 30% * 2/2 * 10 000€ + 50% * 2/2 * 5 000€ = 5 500€
  32. and his contribution to the Entitlement allocation for IS 2 will be
  33. 30% * ½ * 10 000€ + 50% * ½ * 5 000€. = 2 750€
  34.  
  35. Same for user B.
  36.  
  37. The entitlement allocation cost for the Investment strategy is the ∑ over all users entitlement allocation costs for this IS.
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