Total Analyzed Cost

Total Analyzed Cost is the sum of weighted analyzed costs of all items and of all suppliers.

The formula for the weighted analyzed cost of an item for a particular supplier is given below:

Item analyzed cost = (bid price weight x purchasing cost) + performance cost

The total analyzed cost is displayed in the Analyze tab of an RFx or in certain reports and can be used to evaluate award suggestions in a scenario. You can analyze it along with the total purchasing cost and the total performance cost to understand the various costs of working with a supplier.

Note: It is a representative price and does not indicate the actual price you will pay for the item.
The following table displays the total analyzed cost for an item in a scenario.
Table 1. Example for Total Analyzed Cost
Supplier Quantity OTC PPU BVD Purchasing cost Bid Price Weight Bid Factor Weight Performance Cost Total Analyzed Cost
All 1000 2000 39.24   41,242.64     400 36,994.11
Supplier A 586 1000 45.00 15% 23,264.50 0.8 0.2 200 20,611.6
Supplier B 414 1000 41.01   17,978.14 0.8 0.2 200 16,382.51
Legend:
  • OTC - One-time charge
  • PPU - Price per unit
  • BVD - Business volume discount