CMMS, EAM & Spare Parts Management worked example

Parts Obsolescence Risk with financial impact of stranded inventory of 18 score: a worked example

What does the result look like when financial impact of stranded inventory reaches 18 score? The full calculation is worked below with real intermediate numbers. a maintenance or asset-management team needs to prioritize disposition, supplier returns, standardization, or last-time-buy decisions for a obsolete inventory review

The inputs for this scenario

  • Financial impact of stranded inventory (severity): 18 score (raised for this scenario; the documented default is 7)
  • Likelihood the part has no future demand (occurrence): 5 score (unchanged)
  • Weakness of retirement and demand-review controls (detection): 6 score (unchanged)

Working through the calculation

  • Applying the documented formula (Parts Obsolescence Risk risk score = obsolescence financial impact score × likelihood of no future demand × weakness of asset retirement and demand review controls) to the inputs above produces each figure below.
  • At this operating point the engine returns 10.45 score for parts obsolescence risk risk score, the number this scenario is built around.
  • At this operating point the engine returns 18 score for obsolescence financial impact score.
  • At this operating point the engine returns 5 score for likelihood of no future demand.
  • At this operating point the engine returns 6 score for weakness of asset retirement and demand review controls.

How this compares with the baseline

  • Against the tool's baseline example, where financial impact of stranded inventory sits at 7 score and the headline result is 6.05 score, this scenario comes in 72.73% above the baseline at 10.45 score.
  • A figure at this level is achievable when financial impact of stranded inventory is genuinely sustained, not just peaked for a shift. It is a relative ranking tool, not an accounting valuation; two parts with the same score can have very different actual carrying costs and disposition paths.

Results at a glance

  • Parts Obsolescence Risk risk score: 10.45 score (headline result)
  • obsolescence financial impact score: 18 score
  • likelihood of no future demand: 5 score
  • weakness of asset retirement and demand review controls: 6 score

Run it with your numbers

  • Every input above is editable in the live Parts Obsolescence Risk calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.