Calibration Lab & Gauge Management worked example

Gauge Inventory Cost at 58% inventory share in scope: a worked example

Suppose inventory share in scope falls to 58%. This page works the full calculation at that level so you can see exactly which result moves and by how much. Estimate the annual carrying cost of the controlled gauge inventory, including spare gauges, storage, tracking, calibration administration, and asset-control overhead.

The inputs for this scenario

  • Controlled gauges in inventory: 100 gauges (held at the documented default)
  • Annual carrying cost per gauge: 45 $ / gauge (held at the documented default)
  • Inventory share in scope: 58 % (the input this scenario stresses; the baseline uses 80)
  • Fixed gauge-control cost: 250 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Variable inventory carrying cost = controlled gauges × annual carrying cost per gauge × inventory share in scope.
  • Total gauge inventory cost works out to 2,860 $ at these inputs, and this is the headline figure for the scenario.
  • Cost per controlled gauge works out to 28.6 $ / piece at these inputs.
  • Variable inventory carrying cost works out to 2,610 $ at these inputs.
  • Fixed gauge-control cost works out to 250 $ at these inputs.

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 25.71% below the baseline at 2,860 $.
  • 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. When the numbers land here, the stressed input is the lever to work; the walkthrough above shows exactly how much each output recovers as it climbs back toward the baseline.

Results at a glance

  • Total gauge inventory cost: 2,860 $ (headline result)
  • Cost per controlled gauge: 28.6 $ / piece
  • Variable inventory carrying cost: 2,610 $
  • Fixed gauge-control cost: 250 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Gauge Inventory Cost calculator, set inventory share in scope to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.