Defining cost model

You can set up the foundational structure for how costs are calculated and applied across items. This includes selecting the cost field, defining dimensions, and choosing the method of cost calculation.

1. In the Administration application, click Cost model from the side navigation menu.
2. Click Define cost model.
3. Click Add button.
4. In the Add cost model field definition grid, choose the Field name.
   A cost model allows you to configure cost structures for items using one or more of the following predefined cost model fields:

   • Expediting Cost
   • Stockout Penalty
   • Purchasing Cost
   • Holding Cost %
5. Click Add to add dimension.
   Note: When configuring a cost model field, you can define up to four dimensions.
6. Select from the available fields.
7. Choose cost calculation method.

   Data value only

   Manual entry of cost values per matrix combination.

   Value Expression

   Formula-based calculation using a combination of fields and variables like VALUE1, VALUE2, VALUE3, VALUE4.

   Note: If a value expression is used to define a cost model field, an expression must be assigned for each location where the cost model is applied. This ensures that the cost calculation logic is consistently executed across all defined locations.

8. Click Save.