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.