Estimate the supplier lead-time cost assigned to each inbound shipment by combining pipeline financing, supplier administration, expediting, and delay-related charges. The calculator keeps shipment value and time visible so sourcing teams can compare lead-time scenarios on a consistent per-shipment basis.
The result estimates costs associated with the supplier pipeline for one shipment. It does not include the shipment’s inventory purchase value itself, ordinary freight not entered as expediting, duties, or downstream carrying cost after receipt.
Expected delay days should be probability-weighted when delays do not affect every shipment—for example, a 20% chance of a 10-day delay equals 2 expected days.
For an $18,000 shipment, 21-day lead time, and 10% annual capital cost, pipeline financing is $103.56. Adding $85 administration, $120 expediting, and $120 expected delay cost produces $428.56 per shipment.
The value is the capital tied up, so the calculator charges its time-based financing cost rather than treating the asset value itself as an expense.
Use probability-weighted days: multiply the chance of delay by the delay duration and enter that expected value.
Only expediting cost entered here is included. Add ordinary freight elsewhere unless you deliberately enter it in that field.
Capital remains committed for more days, so the annual capital rate is applied to a larger fraction of the year.
Yes, if you enter each supplier’s own shipment value, lead time, administration, expediting, and expected delay assumptions consistently.
| Input | Unit | Role |
|---|---|---|
| Average shipment inventory value | USD | Value tied up while one shipment is in the supplier pipeline. |
| Supplier lead time | days | Time from committed funds or production start to receipt. |
| Annual cost of capital | % | Annual financing or opportunity-cost rate. |
| Supplier admin cost per shipment | USD | Ordering, coordination, inspection, and documentation cost. |
| Expediting cost per shipment | USD | Premium freight or intervention cost attributable to the shipment. |
| Expected delay days | days | Probability-weighted delay duration beyond planned lead time. |
| Cost per delay day | USD/day | Expected operational or contractual cost for each delay day. |