Building a total-cost-of-ownership model
Unit price is the down-payment. Add freight, defects, holding, and end-of-life to compare on true cost.
Five cost layers turn two headline prices into one true cost you can actually compare.
1
Start with unit price
The sticker price per part — where every naive comparison stops, and where a real one starts.
2
Land it — freight & duty
Add inbound freight and import duty to get the part onto your dock, not just out of theirs.
3
Cost the defects
Reject rate drives rework, scrap, and line stoppages — the quiet cost that erases a headline saving.
4
Add holding & end-of-life
Inventory tied up by long lead times, plus disposal or recycling at end of life, complete the true cost.
this is SourceWright
It's in the works.
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