The Supply Chain Implementation Series, Guide #1: Using Industry-Compliant Bar Codes

[ Appendix 1 ] [ Appendix 2 ] [ Appendix 3 ] [ Appendix 4 ] [ Appendix 5 ] [ Appendix 6 ] [ Appendix 7 ] [ Appendix 8 ] [ Appendix 9 ] [ Appendix 10 ]

Appendix 4: ERROR COST WORKSHEET

This worksheet is designed to help you calculate the amount of money that certain types of errors (that can be eliminated through the use of AIDC) are costing your company each month.  We have provided several examples to help you.  You will need to estimate the number of errors per month, as well as the approximate cost associated with each activity.  In calculating the number of errors per month, RECEIVING and SHIPPING errors are often figured as a PERCENTAGE of the total receipts or shipments.  In the MIS-IDENTIFICATION and OTHER categories, you will simply need to estimate the number.

** NOTE: If you want to know how much MORE you need to sell to recover the loss, simply divide by your pre-tax profit.

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