Objective Cost Criteria
The metric to be used as the Objective Cost in the Bang for Buck calculation. This indicates how the Objective Cost for a SKU is populated when a scenario is calculated. Valid options are:
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Option
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Description
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Part Cost
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The Objective Cost is populated with the Part Cost. This is the default selection.
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Optimization Cost
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The Objective Cost is populated with the Optimization Cost defined on the SKU or the Parts page. This enables customizable Part and SKU Optimization Cost inputs to be used as the Objective Cost. To ensure that all SKUs have an Objective Cost when Optimization Cost is selected, the following costs are referenced in priority order by the Bang for Buck calculation:
• Optimization Cost defined on the SKU
• Optimization Cost defined on the Part
• If no Optimization Cost is defined on the SKU or the Part then:
◦ Part Cost defined on the SKU
◦ Part Cost defined on the Part
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Carbon Tax (Embodied) + Part Cost
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The Objective Cost is populated with the (Embodied Carbon Per New Buy * Carbon Tax Rate) + Part Cost.
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Regardless of the Objective Cost Criteria selection:
• The New Buy Cost is the Objective Cost during the enforcement of Service Group New Buy Budget Constraints.
• The combined Repair Cost and New Buy Cost are the Objective Cost during the Availability with Repair Optimization algorithm.
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This indicator is set on the Scenarios page when a scenario is created or modified.