Reshoring & Tariff Strategy worked example

Freight Lead Time Buffer at 12% setup, handling, and delay allowance: a worked example

Push setup, handling, and delay allowance up to 12% and the picture changes. This example computes every intermediate figure at that operating point. Use it when freight lead time buffer in reshoring and tariff strategy is being added to next week's schedule and you need an honest hours estimate.

The inputs for this scenario

  • Freight lead time buffer workload: 120 units (unchanged)
  • Freight lead time buffer completion rate: 12 units / min (unchanged)
  • Setup, handling, and delay allowance: 12 % (raised for this scenario; the documented default is 10)

Working through the calculation

  • Applying the documented formula (Base freight lead time buffer time = freight lead time buffer workload รท freight lead time buffer completion rate) to the inputs above produces each figure below.
  • At this operating point the engine returns 11.2 hr for required freight lead time buffer time, the number this scenario is built around.
  • At this operating point the engine returns 10 hr for base freight lead time buffer time.
  • At this operating point the engine returns 12 % for freight lead time buffer allowance applied.
  • At this operating point the engine returns 12 pieces / min for freight lead time buffer completion rate.

How this compares with the baseline

  • Against the tool's baseline example, where setup, handling, and delay allowance sits at 10% and the headline result is 11 hr, this scenario comes in 1.82% above the baseline at 11.2 hr.
  • It divides workload by completion rate to get base processing time, then inflates it by a setup-and-delay allowance to give required buffer time. 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

  • Required freight lead time buffer time: 11.2 hr (headline result)
  • Base freight lead time buffer time: 10 hr
  • Freight lead time buffer allowance applied: 12 %
  • Freight lead time buffer completion rate: 12 pieces / min

Run it with your numbers

  • Every input above is editable in the live Freight Lead Time Buffer calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.