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