Supply Chain & Procurement worked example

Expedite Freight Premium at 92% share of units moved at premium: a worked example

What does the result look like when share of units moved at premium reaches 92%? The full calculation is worked below with real intermediate numbers. Use it when expedite freight premium in supply chain and procurement is being put through a supply chain and procurement weighted-cost review.

The inputs for this scenario

  • Units on the expedited shipment: 100 units (unchanged)
  • Base freight rate per unit: 45 $ / unit (unchanged)
  • Share of units moved at premium: 92 % (raised for this scenario; the documented default is 80)
  • Fixed expedite handling fee: 250 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Weighted cost = quantity × rate × capture factor + fixed adjustment) to the inputs above produces each figure below.
  • At this operating point the engine returns 4,390 $ for total expedite freight premium cost, the number this scenario is built around.
  • At this operating point the engine returns 43.9 $ / piece for expedite freight premium cost per unit.
  • At this operating point the engine returns 4,140 $ for variable expedite freight premium cost.
  • At this operating point the engine returns 250 $ for fixed expedite freight premium adder.

How this compares with the baseline

  • Against the tool's baseline example, where share of units moved at premium sits at 80% and the headline result is 3,850 $, this scenario comes in 14.03% above the baseline at 4,390 $.
  • A figure at this level is achievable when share of units moved at premium is genuinely sustained, not just peaked for a shift. It captures the freight premium only — it does not value the downstream cost of the line-down itself, lost throughput, or the expediter's own scheduling overtime, so the true cost of a stockout is usually higher than this figure.

Results at a glance

  • Total expedite freight premium cost: 4,390 $ (headline result)
  • Expedite freight premium cost per unit: 43.9 $ / piece
  • Variable expedite freight premium cost: 4,140 $
  • Fixed expedite freight premium adder: 250 $

Run it with your numbers

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

Last reviewed 2026-05-12.