Multi-Attribute Group Pricing
The Multi-Attribute Group Pricing functionality uses Multi-Attribute Groups to execute group price alignment as a function of attribute driven price offsets relative to an anchor price. The anchor price can be a part anchor price or a group statistical anchor price. The attribute driven price offset calculation for each part is based on a combination of group anchor attributes and group weighting factors against each attribute category.
For example, using the anchor price alignment formula with three quantitative attributes and their corresponding weight factors, the input data can be described as follows:
Input | Description |
|---|---|
 | The Anchor Price Alignment Formula |
NPR | New Recommended Price for the part being processed |
Anchor Price | The Anchor Part Price or the Statistical Anchor Price for the group |
Wx | Group weight factor for attribute X |
PAx | Part attribute value for attribute X (for the part being processed) |
AAx | Group anchor attribute value for attribute X |
 | When AAx = 0, then the sub-equation simply becomes Wx * PAx to avoid dividing by 0 issues. |
Notice that the output of the formula is one recommended price for one of the Multi-Attribute Group parts. In other words, only one price is produced for one price stream for the part. The formula is executed once for each of the parts that are included in the Multi-Attribute Group.
The one recommended price, which is the output of the Multi-Attribute Group Pricing process, becomes an input for pricing policies through group price alignment.
See also