;;;-*- Mode:Text -*-

(memo
:to "Pat Kareiva"
:from "Keith Corbett"
:date "April 23, 1987"
:subj "3.0 Software Upgrade Costs and Requirements"
:copy "Clovis Regis, Dan Remeika, David Lee")

Following is a summary of short- and long-term materials requirements
for release 3.0 software upgrade kits.  The various software kits in
question are:

	- 3.0 LISP (operating system release)
	- 3.0 TCP/IP
	- 3.0 Laser1+ (printer software)
	- 3.0 Vista and Iris (graphics)

For each software upgrade, I summarize the requirements to complete all
shipments, then the more immediate requirements.  In other words, in
each case there is a short-term plan that would provide the maximum
benefit for the least expense.  

I am working on a general plan for funding and completing these
shipments which I will complete later in the week.

(vars
nsites 70
nsys5-kits 65
nboot-kits 30
nkits (+ nsys5-kits nboot-kits 5)
qty-bands 20
qty-files 20
qty-sys5 5
qty-usr 5
qty-boot 20
nbands (- nkits qty-bands)
nfiles (- nkits qty-files)
nsys5  (- nsys5-kits qty-sys5)
nusr   (- nsys5-kits qty-usr)
nboot  (- nboot-kits qty-boot)
nall   (+  nbands nfiles nsys5 nusr nboot)
costape 20
cost-band  (* nbands costape)
cost-files (* nfiles costape)
cost-sys5  (* nsys5  costape)
cost-usr   (* nusr   costape)
cost-boot  (* nboot  costape)
cost-tapes   (+ cost-band cost-files cost-sys5 cost-usr cost-boot)
cost-adoc 30
cost-docs (* cost-adoc nkits)
cost-all (+ cost-tapes cost-docs)
)

1. 3.0 LISP

The most immediate requirement is for 3.0 upgrade kits.  There are about
$!nsites customer sites which have not received any 3.0 software.  The
maximum number of kits required (one per system) is about $!nkits.

Based on a worst-case estimated cost per documentation set of about $$!cost-adoc,
the total cost of completing the 3.0 shipments is approximately:

(width 10)
        Item            qty       cost
        ----            ---       ----

        band tape       $!nbands $!cost-band
        files tape      $!nfiles $!cost-files
        sys5 boot tape  $!nsys5 $!cost-sys5
        sys5 usr tape   $!nusr $!cost-usr
        reg. boot tape  $!nboot $!cost-boot
                        ---       ----
                        $!nall $!cost-tapes

        doc set         $!nkits $!cost-docs
                                  ----
        Total                     $$!cost-all

(width minimum)
(vars 
cost-shipping 15
cost-materials (ceiling (quotient cost-all nkits))
cost-per-kit (* 5 (ceiling (+ cost-materials cost-shipping) 5))
)

Pro-rating this, the cost for materials is $!cost-materials; with shipping, 
the cost per kit is roughly $!cost-per-kit.

(vars 
kits-on-hand (min qty-bands qty-files (+ qty-sys5 qty-boot))
cost-of-urgent-docs (* kits-on-hand cost-adoc)
)
We have enough tapes on hand for about $!kits-on-hand kits, but we are
completely out of several manuals, and other quantities are very low.
Our most critical need is for documentation; another run of manuals
would cost us about $cost-of-urgent-manuals and would enable us to continue to respond to
urgent requests.

Looking ahead somewhat, we might price an upgrade kit at $250 and more
than cover these costs. If even half the 70 customers who haven't
received any kits bought just one, we would net $8750 -($3850) = $5000.

The $250 price was proposed to our distributors for extra copies.  At
the lower price of $195 (our 'traditional' media charge), we would net,
as above, $2975.

2. TCP/IP

We need 54 kits to complete shipment. There is one tape ($!costape) plus one
manual (about $10) for a kit cost of about $30 plus $!cost-shipping shipping = $40.
Maximum materials costs are thus $2160.