CMMS, EAM & Spare Parts Management worked example
Spare Parts Carrying Cost at 72% inventory value included in analysis: a worked example in cmms, eam & spare parts management
Here is what the math looks like when conditions slip. We hold every other input steady and drop inventory value included in analysis to 72%, then walk the calculation through step by step. Estimate annual carrying cost for spare parts inventory using stocked value, carrying-rate assumptions, and fixed storeroom cost.
The inputs for this scenario
- Average spare parts inventory value: 850,000 $ inventory (held at the documented default)
- Annual carrying cost rate: 0.18 x / yr (held at the documented default)
- Inventory value included in analysis: 72 % (the input this scenario stresses; the baseline uses 100)
- Fixed storeroom handling and system cost: 32,000 $ (held at the documented default)
Working through the calculation
- The calculation starts from the formula this tool documents: Variable spare parts carrying cost = average spare parts inventory value × annual carrying cost rate × inventory value included in analysis.
- Total spare parts carrying cost works out to 142,160 $ at these inputs, and this is the headline figure for the scenario.
- annual carrying cost rate works out to 0.17 $ / piece at these inputs.
- Variable spare parts carrying cost works out to 110,160 $ at these inputs.
- fixed storeroom handling and system cost works out to 32,000 $ at these inputs.
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 23.16% below the baseline at 142,160 $.
- The practical read: the gap between this scenario and the baseline is entirely attributable to inventory value included in analysis, so recovering it is worth quantifying in dollars before considering equipment or staffing changes. The carrying rate is an industry estimate, not a precise per-part figure — obsolescence risk on slow-moving critical spares can push the true rate well above the blended number you enter.
Results at a glance
- Total spare parts carrying cost: 142,160 $ (headline result)
- annual carrying cost rate: 0.17 $ / piece
- Variable spare parts carrying cost: 110,160 $
- fixed storeroom handling and system cost: 32,000 $
Run it with your numbers
- To rerun this with your own numbers, open the live Spare Parts Carrying Cost calculator, set inventory value included in analysis to your actual value, and adjust the remaining inputs to match your operation.
Last reviewed 2026-05-12.