MDO/COE: What Is Opportunity Cost? (Doc ID 1605044.1)

Last updated on FEBRUARY 01, 2016

Applies to:

Oracle Retail Clearance Optimization Engine - Version 13.3.1 and later
Oracle Retail Markdown Optimization - Version 4.0 and later
Information in this document applies to any platform.

Goal

The Oracle Retail Markdown Optimization Engine (COE) and the Oracle Retail Markdown Optimization (MDO) applications include an Opportunity Cost metric with the default description "The total opportunity cost of the recommended markdowns taken."

What does this metric mean?  How is it calculated?  Does it vary based on forecasted sales?

Solution

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