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Re: Calculating BOM product costs

Posted by Daniel Kunkel on Aug 10, 2006; 1:57pm
URL: http://ofbiz.116.s1.nabble.com/Calculating-BOM-product-costs-tp141315p141319.html

Hi

Just brainstorming for a minute...

I wonder if the supplier cost table and the cost_estimate table should
be combined...  It seems they already have a lot of fields overlapping,
but the cost estimator is much more complete.

With some work, the cost of the product could return a range based on
the lowest and highest costs of each component and possibly even
including the total parts cost based on minimum quantity requirements to
reach each price point.

Eventually reports could also be generated to help track the current
cost to produce a product based on the current cost of the components
verses the average cost which is based on the historic price actually
paid for the components to help businesses judge when they need to
adjust their retail price.

Finally, at the really-high-end, there is the possibility of adding a
statistical dynamic pricing system that automatically adjusts the retail
price to maximize profit... hmmm.

Thanks



On Thu, 2006-08-10 at 09:12 +0200, Jacopo Cappellato wrote:

> Daniel,
>
> sorry, I've missed your second question:
>
> automating the process to create the costs of the raw materials is
> something we have considered (but it is not in my short term todo
> list)... however it could be a bit more complex that what you describe
> here: we should probably consider the ProductAverageCost, the average
> from history of purchase orders, the avarage of
> SupplierProduct.lastPrice (more than one supplier could sell the same
> product) etc...
>
> Jacopo
>
> Daniel Kunkel wrote:
> > Hi
> >
> > The product cost system worked well, however I couldn't get the bom
> > simulation to work. Is that a new feature, as I'm running a month old
> > svn and didn't see anyplace to specify the  currency?
> >
> > --
> >
> > Did you consider adding a mode to grab the component costs directly from
> > the product supplier table, as the way it is now I'm manually copying
> > the costs across, and it seems like an unnecessary duplication of data?
> >
> > Thanks
> >
> > Daniel
> >
> > On Thu, 2006-08-10 at 07:27 +0200, Jacopo Cappellato wrote:
> >> Daniel,
> >>
> >> do you mean the standard costs?
> >> Yes, you can: go to catalog->product (edit product)-> costs
> >> There you can set the standard cost for each of the raw materials (the
> >> products at the bottom of the bom): select the type of "Estimated
> >> Standard Cost", a cost amount and a currency
> >> Then go to the costs tab of the finished product (one level above in the
> >> bom) and run the form at the bottom of the screen ("calculate costs",
> >> always selecting "estimated std costs"): the cost will automatically be
> >> computed and appear in the screen.
> >> You can see the cost (computed in this way) also in the bom simulation
> >> screen (manufacturing application) if you select a currency in the top form.
> >>
> >> Jacopo
> >>
> >> Daniel Kunkel wrote:
> >>> Hi
> >>>
> >>> Is there a way to have OFBiz calculate the cost of a manufactured
> >>> product from the bom and not a production run?
> >>>
> >>> Thanks
> >>>