Calibration Lab & Gauge Management worked example

Gauge Inventory Cost at 92% inventory share in scope: a worked example

Push inventory share in scope up to 92% and the picture changes. This example computes every intermediate figure at that operating point. Use it when gauge inventory cost in calibration lab and gauge management is being put through a calibration lab and gauge management weighted-cost review.

The inputs for this scenario

  • Controlled gauges in inventory: 100 gauges (unchanged)
  • Annual carrying cost per gauge: 45 $ / gauge (unchanged)
  • Inventory share in scope: 92 % (raised for this scenario; the documented default is 80)
  • Fixed gauge-control cost: 250 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Variable inventory carrying cost = controlled gauges × annual carrying cost per gauge × inventory share in scope) to the inputs above produces each figure below.
  • At this operating point the engine returns 4,390 $ for total gauge inventory cost, the number this scenario is built around.
  • At this operating point the engine returns 43.9 $ / piece for cost per controlled gauge.
  • At this operating point the engine returns 4,140 $ for variable inventory carrying cost.
  • At this operating point the engine returns 250 $ for fixed gauge-control cost.

How this compares with the baseline

  • Against the tool's baseline example, where inventory share in scope sits at 80% and the headline result is 3,850 $, this scenario comes in 14.03% above the baseline at 4,390 $.
  • It computes total annual gauge inventory cost — variable carrying cost for the in-scope gauges plus fixed control overhead — and the resulting cost per controlled gauge. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • Total gauge inventory cost: 4,390 $ (headline result)
  • Cost per controlled gauge: 43.9 $ / piece
  • Variable inventory carrying cost: 4,140 $
  • Fixed gauge-control cost: 250 $

Run it with your numbers

  • Every input above is editable in the live Gauge Inventory Cost calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.