Circular Economy, Recycling & Remanufacturing worked example

Repair vs Replace Cost at 74% units expected to be repairable: a worked example

This scenario runs the repair vs replace cost calculation on the strong side: 74% units expected to be repairable, with every other input held at its documented default. a team needs to choose repair, replacement, harvest, or scrap rules for returned products for a return batch, warranty population, or repair policy

The inputs for this scenario

  • Returned products reviewed for repair: 420 units (unchanged)
  • Repair cost per repairable unit: 115 $ / unit (unchanged)
  • Units expected to be repairable: 74 % (raised for this scenario; the documented default is 64)
  • Fixed diagnostics, authorization, or replacement-admin cost: 2,100 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Variable repair cost for repairable units = returned products reviewed for repair × repair cost per repairable unit × units expected to be repairable) to the inputs above produces each figure below.
  • At this operating point the engine returns 37,842 expected repair path cost for expected repair path cost, the number this scenario is built around.
  • At this operating point the engine returns 90.1 $ / piece for repair path cost per return.
  • At this operating point the engine returns 35,742 $ for variable repair cost for repairable units.
  • At this operating point the engine returns 2,100 $ for fixed diagnostics, authorization, or replacement-admin cost.

How this compares with the baseline

  • Against the tool's baseline example, where units expected to be repairable sits at 64% and the headline result is 33,012 expected repair path cost, this scenario comes in 14.63% above the baseline at 37,842 expected repair path cost.
  • Use it when setting warranty repair policy, sizing a refurbishment cell, or comparing repair cost against the landed cost of a new replacement unit. Treat this as a target state: the delta against the baseline quantifies what the improvement is worth before you commit to chasing it.

Results at a glance

  • Expected repair path cost: 37,842 expected repair path cost (headline result)
  • Repair path cost per return: 90.1 $ / piece
  • Variable repair cost for repairable units: 35,742 $
  • Fixed diagnostics, authorization, or replacement-admin cost: 2,100 $

Run it with your numbers

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

Last reviewed 2026-05-12.