ERP & MRP Planning worked example

Expedite Cost Impact at 110% cost assigned to this order: a worked example

Push cost assigned to this order up to 110% and the picture changes. This example computes every intermediate figure at that operating point. a planner needs to justify or avoid expediting an order

The inputs for this scenario

  • Expedited units or hours: 240 units (unchanged)
  • Expedite premium per unit or hour: 16.5 $ / unit (unchanged)
  • Cost assigned to this order: 110 % (raised for this scenario; the documented default is 100)
  • Fixed expedite fees: 650 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Variable expedite cost = expedited units or hours × premium rate × assigned share) to the inputs above produces each figure below.
  • At this operating point the engine returns 5,006 $ for total expedite cost impact, the number this scenario is built around.
  • At this operating point the engine returns 20.86 $ / unit for expedite cost per expedited unit/hour.
  • At this operating point the engine returns 4,356 $ for variable expedite cost.
  • At this operating point the engine returns 650 $ for fixed expedite fees.

How this compares with the baseline

  • Against the tool's baseline example, where cost assigned to this order sits at 100% and the headline result is 4,610 $, this scenario comes in 8.59% above the baseline at 5,006 $.
  • It computes variable expedite cost as expedited units times the premium rate times the assigned share, then adds fixed expedite fees for a total impact. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • Total expedite cost impact: 5,006 $ (headline result)
  • Expedite cost per expedited unit/hour: 20.86 $ / unit
  • Variable expedite cost: 4,356 $
  • Fixed expedite fees: 650 $

Run it with your numbers

  • Every input above is editable in the live Expedite Cost Impact calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.