Home
  Users
  MH Glossary
  Material Handling Info
  How to Get Started
  Daifuku America
Material Handling Information - Solution Worksheets - ROI Calculation Worksheet
   
Solution Worksheets
ROI Calculation Worksheet
Instructions:

Enter the responses to the questions in the answer column, then click "Submit." Based on your answer, Material Handling info.com will give you a preliminary Return On Investment (ROI) for your proposed system. Enter all values as whole numbers; do not use decimals or commas. For items that do not apply, enter "0".

Assumptions:

  1. There are many ways to cost justify a project or determine a Return on Investment (ROI). Basically, a proposed system cost is compared against one time and yearly savings associated with implementing the proposed system.
  2. The ROI calculations below do not include depreciation or other tax considerations.
Questions Answers
1. What are the cost of the proposed system equipment? These include storage buffers, transport systems, sortation systems, software, controls, forklift trucks, and other material handling equipment.
 $
2. What are the cost of the new building construction that is associated with the proposed system? These include site work, building, additions, modifications, and docks.
 $
3. What are the one-time cost avoidance savings, costs that can be avoided by proceeding with the proposed system? These include reduced inventory costs, eliminating the need for additional shelving/racking, building modifications, and/or upgrade/repair of existing equipment.
 $
4. What are the yearly cost avoidance/other savings, annual costs that can be avoided by proceeding with the proposed system, annual productivity gains, or other savings? These include reduced manpower, reduced inventory carrying costs, reduced overtime, reduced product damage/error correction, reduced Workman's Compensation, eliminating need for leasing off-site warehouse space.
 $
5. What is the annual growth rate? Use this growth factor only to adjust yearly cost avoidance/other savings if they will increase over the course of the project. For example, if yearly manpower savings is $200,000, company growth over the project would increase this savings annually.
     %
6.What is the company internal interest (hurdle) rate? (Use whole numbers only: e.g. 8%.)
     %
                 
Guest Survey