Total Cost of Ownership Estimator™ Results

Created By: EnviroGreen Total Cost of Ownership

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Cost FactorU.S.IndiaCalculation Formula
CoGS (Cost of Goods Sold)   
FOB price $200,000.00 $180,000.00  
Packaging $4,000.00 $3,600.00 unit price x packaging cost %
Duty $0.00 $7,200.00 duty % x price
Fees: % of price $0.00 $1,278.00 fee % x price
Fees: flat $0.00 $4.00 fee
Routine surface freight, excluding local $0.00 $1,943.51 % routinely planned for surface freight x (unit weight + packaging weight) X surface freight rate
Routine air freight, excluding local $0.00 $3,943.15 (1- % routinely planned for surface freight) x (unit weight + packaging weight) X air freight rate
Freight insurance at 0.5% on imported product $0.00 $900.00  
Total CoGS $204,000.00 $198,868.67  
Other Hard Costs   
Carrying cost for intransit offshored product if paid before shipment $0.00 $7,500.00 shipment time in years X interest rate X price
Carrying cost for inventory on-site $5,555.56 $6,000.00 unit price X ( avg. cycle inventory mos. + safety stock mos. + buffer stock mos.) / 12 X carrying cost %
Prototype cost $1.67 $3.33 prototype cost/annual units/product life
End-of-life inventory $2,407.41 $3,500.00 1/12 x unit price x (Delivery time + avg. inventory) x annual quantity/annual quantity/product life
Travel: start-up $40.00 $40.00 start-up cost / annual units / vendor life
Travel: audit/maintain $16.00 $122.00 annual # of trips X (per trip cost of travel time + expense) / annual units
Pick/place into local inventory $0.00 $3,200.00 (1- % of inventory delivered JIT) x U.S. unit price x pick and place cost as % of U.S. unit price
Purchasing cost, excluding travel $4,000.00 $4,000.00 U.S. unit price x purchase cost %
Total Other Hard Costs $12,020.63 $24,365.33  
Cumulative Total $216,020.63 $223,234.00  
Risk   
Emergency air freight $0.00 $985.79 % air freighted x (unit weight + unit pkg. weight) x air freight rate
Rework/quality $2,000.00 $7,200.00 unit price X quality cost %
Product liability non-recovery risk $2,000.00 $1,080.00 unit price X liability risk cost %
IP risk $200.00 $3,600.00 unit price X IP risk cost %
Opportunity cost: lost orders, slow response, lost customers $1,000.00 $2,700.00 unit price x opportunity risk cost %
Economic stability of the supplier $200.00 $900.00 unit price x supplier economic instabiltiy risk
Political stability of the supplier $200.00 $900.00 unit price x supplier political instabiltiy risk
Total Risk $5,600.00 $17,365.79  
Cumulative Total $221,620.63 $240,599.79  
Strategic   
Impact on innovation of distance from mfg. $0.00 $900.00 unit price x innovation risk cost %
Impact on product differentiation / mass customization $0.00 $900.00 unit price x commoditization risk cost %
Total Strategic $0.00 $1,800.00  
Cumulative Total $221,620.63 $242,399.79  
Green   
Production  
Shipping  
Local Warehouse  
Travel  
Disposal of obsolete inventory  
Total Green $0.00 $0.00  
 
 
 
GRAND TOTAL $221,620.63 $242,399.79  
5 Year Forecast   
Annual impact of wage inflation and currency appreciation on $ price of product 1.20% 4.50% 0.3 x (wage inflation % + currency appreciation %)