Using Yield Calculation to Adjust Cost

© Frank Haluch 2011-2025

Many raw materials are bought by weight but are incorporated into finished products using a different unit of measure, such as pieces or inches.  Therefore, a yield calculation needs to be performed to determine the real cost the material as it is arriving from a supplier.

Because the weight of a bundle of material is impacted by its actual dimension and density.  It is important to verify a supplier’s “Density” compared to the published national standard, because density is the primary component of weight. [Search for "Density of Metals, All Common Metal Density Chart & Table PDF (theworldmaterial.com)"]  

In the example below, “Supplier B” cost $1.57 per sheet or 3.3% more than “Supplier A,” even though Supplier B’s cost per pound is 7.7% lower!

Supplier A

Theoretical Weight (lbs.) = 0.53 X 30.0 X 60.0 X 0.2833 = 270.27 lbs.

Cost per pound= $350.00 / 2,000 = $0.175 per lb.

Cost per sheet = $0.175 X 270.27 = $47.30

Supplier B

Theoretical Weight (lbs.) = 0.58 X 30.25 X 60.50 X 0.2833 = 300.72lbs.

Cost per Pound = $325.00 / 2,000 = $0.1625 per lb.

Cost per sheet = $0.1625 X 300.72 = $48.87

Go to Online Metal Weight Calculator for Metal Plate, Sheet, Bar, Pipe & Tube (theworldmaterial.com)

Having this type of data (density and dimensional accuracy) can lead to discussions about cost adjustments.

Sourcing is for Convergent Thinkers!