on 10-08-2007 1:24 PM
Hi,
Please explain me the difference between single level costa and multi level costs.where we have to use theboth costs
Hi,
Single Level Cost is the Cost of the product which is maintained in the Material Master.
Say Product A's Material master having price as Rs 100
Product A is made of Product B and C.
Product B's price is 75 and Prodct C's Price is 20.
Hence the material cost to produce Product A is B + C's price = 75 +20 = 95.
Which is called as Multilevel cost.
Will suggest you to check the BOM concept related to Single level and Multilevel .
As well as look more details on the costing interms of material costing, production cost and final cost of the product etc.
May I know it which functionality of APO you are using single level and multilevel costing?
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Hi anjali,
single level costs are relevent for snp optimisation, where as multi level costsare relevevnt for CTM and PP/DS.Do u have ny idea why specific single level costs are relevent for SNP optimisation and multi level costs are maintained at CTM and PP/DS.As I am new to this area
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To the best of knowledge, CTM uses multi-level fixed and variable costs only for prioritization, which in other words is source-determination. Thus it is just relevent if it has to make choices between two potential sources. This holds good for some of the PPDS logic as well. CTM is not exactly a true optimization engine though like Optimizer. I would assume that Optimization engine would become highly complex and impractical if it takes multi-level costs into account. To simpify it takes single-level costs only and reduces the processing time without much impacting the plan quality.
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