Retail Predictive Application Server (MOSC)

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COE - Salvage Value Behavior

edited Apr 24, 2014 4:52PM in Retail Predictive Application Server (MOSC) 8 commentsAnswered ✓

Hi, how are you?

I would like to ask if ou could clarify the interaction between Salvage Cost and Salvage Above Target business rules, and also a doubt regarding salvage cost.

On 14.0 impl. guide, we have this statement:

"Salvage Cost

This business rule defines the known or estimated residual value of merchandise that

remains at the end of the life cycle. It is the lowest price point that a retailer selects for

selling an item. The model uses an item’s residual value to set a floor on possible price

recommendations. A higher residual value causes the model to use a less aggressive

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