Alfred Lewis Engineering
Total lifetime cost calculator
Compare a local sourced part with a foreign sourced part on lifetime cost, supply risk, working capital, quality, logistics, downtime exposure and MOQ waste. Rates are entered as decimals, for example 0.05 means 5%.
Decision summary
Fair sourcing recommendation
Local lifetime cost
Foreign lifetime cost
Foreign cost less local cost
Local risk score
Maximum score is 3.0. Higher is lower risk.
Foreign risk score
Cost-only recommendation
Part context and global assumptions
Cost and risk inputs
Local unit price is treated as AUD. Foreign unit price is converted using the FX rate above. Positive payment terms mean days after receipt. Negative payment terms mean deposit or prepayment days.
| Input | Local supplier | Foreign supplier | Unit or note |
|---|
Non-price sourcing risk score
Score each factor from 0 to 3. A higher score means lower practical sourcing risk.
| Risk factor | Weight | Local score | Foreign score | Score guidance |
|---|
Lifetime cost calculation
| Cost category | Local supplier | Foreign supplier | Foreign less local |
|---|
Formula coverage
- Annual units purchased equals the annual order count multiplied by the larger of batch quantity and MOQ.
- Purchase cost includes MOQ effects across the full program life.
- Logistics includes freight, broker, packaging, delivery, customs duty and freight insurance.
- Working capital uses lead time, safety stock, payment timing and internal cost of capital.
- Quality includes expected defects, incoming inspection and annual quality escape exposure.
- Disruption includes expected downtime exposure and expediting exposure.
- Risk recommendation uses calculated lifetime cost, criticality and weighted risk scores.