Compare supplier quotes using material price, freight, usable yield and lead time to estimate the real purchasing cost.
A supplier's quoted material price is not always the same as the true cost of usable material. Freight, yield and delivery time can materially change the purchasing decision.
For example, a supplier quoting a lower material price may become more expensive after freight and lower usable yield are included.
Yield represents the percentage of purchased material expected to become usable material for the intended operation. A 90% yield means approximately 90% of the purchased quantity is considered usable under the assumptions entered.
Yield can reflect cutting loss, processing loss, rejection or other material losses depending on how the purchaser defines it. Use a consistent definition for every supplier.
Freight can make a low quoted material price less attractive. Include the freight amount on the same unit basis as the material price.
If one supplier quotes freight per shipment rather than per unit, convert it to a comparable per-unit value before entering it.
Lead time does not directly change the material's monetary cost, but it can affect production scheduling, inventory requirements and the risk of a material shortage.
The calculator therefore displays lead time separately and uses the selected lead-time importance when calculating its overall comparison score.
A shorter lead time should not automatically override specification compliance, quality or traceability requirements.
The overall result is a decision aid rather than a purchasing rule. It combines the cost, yield, lead-time and quality/compliance information entered by the user.
The lowest effective usable cost is useful when material economics are the primary concern. A supplier with a slightly higher cost may still be preferable when delivery, quality, consistency or other commercial requirements are more important.
Suppose Supplier A quotes 100 currency units per purchased unit with 8 units of freight and a 92% usable yield. Its effective usable cost is approximately 117.39 currency units per usable unit.
Supplier B may quote less for the material but have higher freight and lower yield. This demonstrates why comparing only the first quoted price can produce a misleading purchasing decision.
Comparing quoted price only: Freight and usable yield can change the effective cost.
Using different units: Price, freight and required quantity must use consistent units.
Ignoring yield: A cheaper raw material can become more expensive per usable unit.
Treating lead time as a cost: Lead time is displayed separately and weighted as a decision factor rather than being falsely converted into money.
Ignoring quality: The cheapest compliant-looking quote may not be the best commercial choice if quality or traceability is unreliable.
This calculator uses the assumptions entered by the user. It does not verify supplier quotations, freight invoices, material quality, certificates, supplier reliability or actual production yield.
The overall ranking is a comparison aid, not a substitute for technical purchasing review, approved supplier controls or applicable material specifications.
What does the metal supplier comparison calculator compare?
It compares material price, freight, usable yield, lead time and the entered quality/compliance score.
How is effective usable cost calculated?
Material price and freight are added and divided by the usable yield expressed as a decimal.
Why does yield matter?
Lower yield means more purchased material is required to obtain the same usable quantity.
Does it automatically select the cheapest supplier?
It identifies the strongest overall option using the entered comparison factors, but purchasing decisions should include other applicable requirements.
Can I use INR, USD or another currency?
Yes. Use the same currency consistently across all supplier prices and freight values.
Should lead time always have a high weight?
No. Choose the importance that matches your purchasing situation.