ERP & MRP Planning worked example

Expedite Cost Impact at 72% cost assigned to this order: a worked example

Suppose cost assigned to this order falls to 72%. This page works the full calculation at that level so you can see exactly which result moves and by how much. Estimate expedite cost from expedited units or hours, premium rate, applicable share, and fixed expedite fees.

The inputs for this scenario

  • Expedited units or hours: 240 units (held at the documented default)
  • Expedite premium per unit or hour: 16.5 $ / unit (held at the documented default)
  • Cost assigned to this order: 72 % (the input this scenario stresses; the baseline uses 100)
  • Fixed expedite fees: 650 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Variable expedite cost = expedited units or hours × premium rate × assigned share.
  • Total expedite cost impact works out to 3,501 $ at these inputs, and this is the headline figure for the scenario.
  • Expedite cost per expedited unit/hour works out to 14.59 $ / unit at these inputs.
  • Variable expedite cost works out to 2,851 $ at these inputs.
  • Fixed expedite fees works out to 650 $ at these inputs.

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 24.05% below the baseline at 3,501 $.
  • 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. When the numbers land here, the stressed input is the lever to work; the walkthrough above shows exactly how much each output recovers as it climbs back toward the baseline.

Results at a glance

  • Total expedite cost impact: 3,501 $ (headline result)
  • Expedite cost per expedited unit/hour: 14.59 $ / unit
  • Variable expedite cost: 2,851 $
  • Fixed expedite fees: 650 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Expedite Cost Impact calculator, set cost assigned to this order to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.