Parameters 

Material cost: 

  • Calculated cost of the material based on the should cost or purchase price of the higher levels. 

Manufacturing cost: 

  • Calculated cost product manufacturing depending on defined parameters in the cost model.

Total cost: 

  • The calculated total cost of a product as the sum of the material cost and the manufacturing cost.

Should cost: 

  • The calculation should cost of the product, based on the total cost plus a margin.

Should cost range: 

  • Based on the price bandwidth for the different materials, the bandwidth for the range is calculated.

Purchase price: 

  • Primary data based purchased price of a material.

Potential saving

  • Saving potential in the supply chain through alternative material prices.

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