## 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.