THE FEUTEX TOOLKIT

Supplier Quality-Adjusted Quote

Include expected scrap and inspection costs when comparing two supplier quotes.

Supply Chain workspace● Runs in your browser

01 Your input

QuantityitemsA pricecurrencyA defects%B pricecurrencyB defects%Failure costcurrencyInspection acurrencyInspection bcurrency

02 Your result

View or copy raw result data

Result data

Formula

Supplier a total = v.quantity*(v.a_price+v.a_defects/100*v.failure_cost)+v.inspection_a ; Supplier b total = v.quantity*(v.b_price+v.b_defects/100*v.failure_cost)+v.inspection_b

Sources and model references

https://openstax.org/books/principles-managerial-accounting/pages/10-3-evaluate-and-determine-whether-to-make-or-buy-a-component

Worked example

Inputs

Quantity: 10000 items
A price: 5 currency
A defects: 2 %
B price: 5.2 currency
B defects: 0.5 %
Failure cost: 20 currency
Inspection a: 500 currency
Inspection b: 200 currency

Expected results

Supplier a total: 54500 currency
Supplier b total: 53200 currency

Load the example in the workspace to reproduce these results. Display rounding does not change the underlying calculation.

How to use this tool

Enter your own assumptions using a consistent currency and period.
Review the scenario outputs and compare alternative inputs.
Check the stated model limits before using the result in an operating plan.

Try this example

{
  "quantity": 10000,
  "a_price": 5,
  "a_defects": 2,
  "b_price": 5.2,
  "b_defects": 0.5,
  "failure_cost": 20,
  "inspection_a": 500,
  "inspection_b": 200
}

Accuracy and scope

Deterministic planning scenario; inputs are assumptions, not forecasts. Excludes taxes, financing, legal requirements and costs not explicitly entered. Source explains the underlying planning framework; this specific scenario arithmetic is original.

Is my data uploaded?

This tool runs locally in your browser. Input and output are not sent to a processing server. Copy or download your result before leaving the page.