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O2 AI

Definition

What is Should-cost modeling in electronics sourcing?

Estimating what a component or assembly ought to cost based on materials, process, volume, and market conditions, rather than only on quoted price. Should-cost gives buyers a baseline to negotiate against and to flag over-priced quotes.

Related terms

← All electronics sourcing & BOM terms

Every part on your BOM, resolved automatically.

O2 reads a bill of materials end to end: it normalizes part numbers, checks lifecycle and compliance on every line, finds alternates, and drafts the quote.