Enter the manufacturing cost, product supply non-manufacturing expense, and finished logistics costs into the calculator to determine the total delivery cost.

## Total Delivery Cost Formula

The following formula is used to calculate a total delivery cost.

TDC = MC + NME + LC

• Where TDC is the total delivery cost (\$)
• MC is the manufacturing cost (\$)
• NME is all non-manufacturing product expenses (\$)
• LC is the total cost of logistics (\$)

To calculate a total delivery cost, add together the manufacturing cost, non-manufacturing product expenses, and total cost of logistics.

## What is a total delivery cost?

Definition:

A total delivery cost is a term used in business to describe the total cost for a product to arrive on the businesses floor. It aims to combine both product cost and logistic costs into one metric.

## How to calculate total delivery cost?

Example Problem:

The following example outlines how to calculate a total delivery cost.

First, determine the total manufacturing cost. For this example, the manufacturing cost is found to be \$10,000.00.

Next, determine the total product supply non-manufacturing expenses. These are found to be \$2,000.00.

Next, determine the total logistics costs. In this case, this is found to be \$3,000.00.

Finally, calculate the total delivery cost using the formula above:

TDC = MC + NME + LC

TDC = 10000 + 2000 + 3000

TDC = \$15,000.00