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Corrosion Cost Calculator

Descriptions
Code
Your Estimates
 Comment
Number of your products shipped per year
A
 Units
Your average cost of producing each product
B
 Currency
Percentage of products rejected by shipment receiver due to corrosion or related quality failures
C
 (%)
Percentage of rejected products you are unable to salvage and need to scrap
D
 (%)
Cost of reworking each product
E
Currency		 Some companies have found this to be more than 30% of product cost when all the direct costs are taken into consideration.
     
     
Totals      
Direct cost of corrosion per year (subtotal)
F
 F = (A x B x C x D) + [A x C x (1-D) x E]
Indirect cost of corrosion per year, maintenance of additional inventory, lost freight, warehousing, repacking and handling, production halts, air freight charges, personnel, etc.
G
 Some companies have found this to be more than 15% of the direct cost of corrosion calculated above.

G = F x 0.15
Your total direct and indirect cost of corrosion per year
H
 H = F + G
Your total direct and indirect cost of corrosion per day
I
 I = H ÷ 255
Tewes Corporation | Packaging and Supplies