CMMS, EAM & Spare Parts Management worked example

Spare Parts Carrying Cost at 110% inventory value included in analysis: a worked example in cmms, eam & spare parts management

Push inventory value included in analysis up to 110% and the picture changes. This example computes every intermediate figure at that operating point. a maintenance or asset-management team needs to quantify inventory carrying cost, compare stocking strategies, or challenge excess and obsolete MRO inventory for a MRO storeroom

The inputs for this scenario

  • Average spare parts inventory value: 850,000 $ inventory (unchanged)
  • Annual carrying cost rate: 0.18 x / yr (unchanged)
  • Inventory value included in analysis: 110 % (raised for this scenario; the documented default is 100)
  • Fixed storeroom handling and system cost: 32,000 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Variable spare parts carrying cost = average spare parts inventory value × annual carrying cost rate × inventory value included in analysis) to the inputs above produces each figure below.
  • At this operating point the engine returns 200,300 $ for total spare parts carrying cost, the number this scenario is built around.
  • At this operating point the engine returns 0.24 $ / piece for annual carrying cost rate.
  • At this operating point the engine returns 168,300 $ for variable spare parts carrying cost.
  • At this operating point the engine returns 32,000 $ for fixed storeroom handling and system cost.

How this compares with the baseline

  • Against the tool's baseline example, where inventory value included in analysis sits at 100% and the headline result is 185,000 $, this scenario comes in 8.27% above the baseline at 200,300 $.
  • It computes the total annual carrying cost of spare parts as the inventory value multiplied by the carrying rate and analysis coverage, plus fixed storeroom and system overhead. 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 spare parts carrying cost: 200,300 $ (headline result)
  • annual carrying cost rate: 0.24 $ / piece
  • Variable spare parts carrying cost: 168,300 $
  • fixed storeroom handling and system cost: 32,000 $

Run it with your numbers

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

Last reviewed 2026-05-12.