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How do I evaluate under which circumstances I need to create index for queries

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Hi All,

Have seen instance where we are picking certain product attributes[for around 70k products] from under /etc/commerce/products and using it as an input feed for some 3rd party integrations. 

Lucene index is created for the same.

My doubt is there might be multiple scenarios where the querying happens in the application.

1] How do I decide, whether or not indexes need to be created for them or not? I understand  this is solely dependent on environmental factors etc, but some explanation here would be helpful.

2] Suppose, at certain places creating indexes is not required, but its done. There are chances it might affect system performance?

3] Looks like the link shared by Chetan http://oakutils.appspot.com/generate/index would suffice if one were to created indexes for any given query. Is that correct?

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