Configure Price Quote (CPQ) Software is a term used in B2B to describe software systems that help sellers quote complex and configurable products. An example could be a maker of heavy trucks. If the customer chooses a certain chassis, the choice of engines may be limited, because certain engines do not fit certain chassis. Given a certain choice of engine, the choice of trailer may be limited (e.g. a heavy trailer requires a stronger engine), and so on. If the product is highly configurable, the user may face combinatorial explosion. Thus a configuration engine is employed to alleviate this problem.
The "C" in CPQ deals with the complex challenges of combining components and parts into a sellable product. There are three main approaches employed to alleviate the problem of combinatorial explosion.