Total Cost of Ownership Estimator™ Results

Created By: Sample TCO Form

Modify Inputs

Cost FactorU.S.ChinaCalculation Formula
CoGS (Cost of Goods Sold)   
FOB price $158.92 $114.15  
Packaging $1.59 $2.28 unit price x packaging cost %
Duty $0.00 $4.57 duty % x price
Fees: % of price $0.00 $0.81 fee % x price
Fees: flat $0.00 $0.10 fee
Routine surface freight, excluding local $0.00 $0.29 % routinely planned for surface freight x (unit weight + packaging weight) X surface freight rate
Routine air freight, excluding local $0.00 $0.00 (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 $0.57  
Total CoGS $160.51 $122.77  
Other Hard Costs   
Carrying cost for intransit offshored product if paid before shipment $0.00 $0.76 shipment time in years X interest rate X price
Carrying cost for inventory on-site $1.31 $4.19 unit price X ( avg. cycle inventory mos. + safety stock mos. + buffer stock mos.) / 12 X carrying cost %
Prototype cost $0.03 $0.12 prototype cost/annual units/product life
End-of-life inventory $3.84 $9.51 1/12 x unit price x (Delivery time + avg. inventory) x annual quantity/annual quantity/product life
Travel: start-up $0.02 $0.17 start-up cost / annual units / vendor life
Travel: audit/maintain $0.08 $1.57 annual # of trips X (per trip cost of travel time + expense) / annual units
Pick/place into local inventory $0.00 $3.18 (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 $3.18 $4.77 U.S. unit price x purchase cost %
Total Other Hard Costs $8.46 $24.26  
Cumulative Total $168.97 $147.03  
Risk   
Emergency air freight $0.00 $0.37 % air freighted x (unit weight + unit pkg. weight) x air freight rate
Rework/quality $1.59 $3.42 unit price X quality cost %
Product liability non-recovery risk $0.16 $0.68 unit price X liability risk cost %
IP risk $0.16 $2.28 unit price X IP risk cost %
Opportunity cost: lost orders, slow response, lost customers $0.79 $1.71 unit price x opportunity risk cost %
Economic stability of the supplier $0.16 $0.57 unit price x supplier economic instabiltiy risk
Political stability of the supplier $0.16 $0.57 unit price x supplier political instabiltiy risk
Total Risk $3.02 $9.61  
Cumulative Total $171.98 $156.64  
Strategic   
Impact on innovation of distance from mfg. $0.00 $0.57 unit price x innovation risk cost %
Impact on product differentiation / mass customization $0.00 $0.57 unit price x commoditization risk cost %
Total Strategic $0.00 $1.14  
Cumulative Total $171.98 $157.78  
Green   
Production  
Shipping  
Local Warehouse  
Travel  
Disposal of obsolete inventory  
Total Green $0.00 $0.00  
 
 
 
GRAND TOTAL $171.98 $157.78  
5 Year Forecast   
Annual impact of wage inflation and currency appreciation on $ price of product 0.60% 4.50% 0.3 x (wage inflation % + currency appreciation %)