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19 AUGUST 2008	HOME | INDEX

Many flavorists only take into consideration the ingredient cost of formulations, which may be the smallest contributing cost. The number of ingredients in a formula is important not only for ingredient costs, but also from a number of other associated costs.

Ingredient shelf life depends upon the chemical properties of the ingredient, time, and storage conditions. The combination of these variables can significantly affect shelf life and consequently the sensory properties of the ingredient.

In general, ingredients past their shelf life exhibit reduced flavor strength, or a change in sensory properties from chemical reactions. Flavor strength of aged ingredients can be reduced to almost zero.

The following list identifies the operations involved in the True Cost of Flavor Formulations. Many of these operations are required for each ingredient used in the flavor

 Ingredient cost
        Cost for each ingredient

Quality Control Costs
            Instrumentation (GC, MS, etc.) and other analytical tests
            Determine usability of aged ingredients
            Review Specifications
            Sensory (Old and or New Ingredients)
            Sensory on finished flavor

 Manufacturing Costs
            Purchasing 
            Inventory
            Formulation Time (depends upon number of ingredients)
            Sub Compounds – Flavors or Solutions
            Fixed costs, Variable costs and other related costs

Variables affecting Costs and Quality
            Number of ingredients in formula
            Quality Control
            Manufacturing
            Use of Unnecessary Ingredients

Many formulations do not reflect the complete cost if all of the ingredient costs, processes and handling by various departments are not taken into account.

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