total_cost_ownership
Compute total cost of ownership across supply chain strategies, factoring product cost, freight, duty, inventory, capital, and risk to rank origin-mode combinations.
Instructions
The CFO / supply-chain-director cumbre tool: ONE comparable number per strategy that ties the WHOLE chain together. Give a product + destination + per-unit baseline FOB + annual demand, and it composes, PER STRATEGY (origin × mode): PRODUCT cost (origin cost index), all-in FREIGHT (door-to-door), DUTY/landed (Section 301 / FTA preference), INVENTORY cost (safety stock + cycle holding driven by the lead time & its variability), CAPITAL-IN-TRANSIT (pipeline value × cost of capital), and a RISK premium (lane-risk score × inventory value). It ranks the strategies by TOTAL TCO and shows WHY the ranking flips: nearshore (Mexico) can BEAT China on TCO even with a pricier product (no Section 301, shorter lead → less inventory+capital, lower risk); AIR can win for HIGH-VALUE goods (the capital+inventory saving dwarfs the freight premium); and the ranking shifts with volume and unit value. This is the tool that ties the entire freight-pulse stack into one decision. Honest (regla 7): composes the indicative outputs of the sourcing/landed/transit/inventory/lane-risk engines; not an audited cost or a binding tariff classification. PREMIUM: pay per call with x402 (USDC on Base) or a prepaid key.
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| product | Yes | Product text ('bluetooth earbuds') or an HS code. REQUIRED. | |
| hs_code | No | Explicit HS code (alternative to product). | |
| dest_port | Yes | Destination port. REQUIRED. | |
| fob_value | Yes | Per-unit baseline FOB (the China-equivalent manufactured cost) in USD. REQUIRED — other origins scale from it. | |
| annual_demand_units | Yes | Annual demand in UNITS. REQUIRED. | |
| container_type | No | Container '20ft'/'40ft'/'40HC'. Optional; default '40ft'. | |
| candidates | No | Candidate origin ISO2 codes (CN, VN, IN, MX, TR, TH, ID, MY). Optional; default the China+1 set. | |
| include_air | No | Also evaluate AIR per origin. Optional; default true. | |
| units_per_container | No | Units per container. Optional; default a value-density proxy. | |
| air_weight_kg | No | Air weight per container-equivalent (kg) to price air. Optional. | |
| demand_cv | No | Demand CV. Optional; default 0.30. | |
| service_level | No | Service level. Optional; default 0.95. | |
| annual_holding_rate_pct | No | Holding rate. Optional; default 0.25. | |
| annual_capital_rate_pct | No | Cost of capital. Optional; default 0.12. | |
| ordering_cost_usd | No | Ordering cost per PO. Optional; default 250. | |
| risk_cost_factor | No | Fraction of avg inventory value charged as expected-disruption cost (scaled by lane-risk/100). Optional; default 0.5. | |
| ship_date | No | Ship date (YYYY-MM-DD). Optional. |