Cost model
A cost model is a feature that helps organizations define and apply cost logic to assets, inventory, and operations. It supports dynamic cost calculations such as stockout penalties, holding costs, purchasing costs, and expediting fees based on item attributes and changing business conditions.
Benefits of cost model
Organizations often operate in varied locations and conditions, where costs can fluctuate. The
cost model helps manage this complexity by enabling:
- Location-specific cost logic
- Multi-dimensional cost calculations
- Flexible configuration
- User-controlled access