Method for estimating price procurement of standardized components. Case study – springs

Abstract

This paper presents a mode for applying a methodology of estimating the price, presented in previous researches and applied for the price forecasting of springs for light / heavy load. By applying this methodology, the manufacturing companies will succeed in forecasting the procurement price from price offers given to the customers, offers related to similar quotation requests, for products with constructive characteristics comparable or different to the most currently proposed ones. The methodology proposed can be used for the procurement price forecasting for standard components from different equipment from manufacturing process systems. This methodology has as starting point a causal forecast model that is based on the hypothesis that the variable we want to forecast (the product procurement price) is related to another variable which in turn is related to the general environment. The methodology is exemplified by a case study on springs price forecasting. In the spring price estimation process different elements are considered, such as: the shape and the size of the items, the production costs, the profit margin practiced by the manufacturing company, the utility of the item etc.