Coffee, Tea, Roasting & Dry Goods Processing worked example

Scrap/Rework Cost at 110% affected product scope: a worked example in coffee, tea, roasting & dry goods processing

What does the result look like when affected product scope reaches 110%? The full calculation is worked below with real intermediate numbers. costing rejected or reworked coffee, tea, and dry goods batches

The inputs for this scenario

  • Scrap or rework product weight: 180 lb (unchanged)
  • Cost per affected pound: 7.8 $/lb (unchanged)
  • Affected product scope (capture factor): 110 % (raised for this scenario; the documented default is 100)
  • Rework labor, testing, and disposal adders: 260 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Variable scrap/rework cost = scrap or rework product weight × cost per affected pound × affected product scope) to the inputs above produces each figure below.
  • At this operating point the engine returns 1,804 $ for total scrap/rework cost, the number this scenario is built around.
  • At this operating point the engine returns 10.02 $ / piece for scrap/rework cost per sellable unit.
  • At this operating point the engine returns 1,544 $ for variable scrap/rework cost.
  • At this operating point the engine returns 260 $ for rework labor, testing, and disposal adders.

How this compares with the baseline

  • Against the tool's baseline example, where affected product scope sits at 100% and the headline result is 1,664 $, this scenario comes in 8.44% above the baseline at 1,804 $.
  • A figure at this level is achievable when affected product scope is genuinely sustained, not just peaked for a shift. It captures direct costs but not the downstream value of lost capacity, expedite fees, or customer goodwill, so for a stockout-driving defect the real cost is higher than this figure.

Results at a glance

  • total scrap/rework cost: 1,804 $ (headline result)
  • scrap/rework cost per sellable unit: 10.02 $ / piece
  • variable scrap/rework cost: 1,544 $
  • rework labor, testing, and disposal adders: 260 $

Run it with your numbers

  • Every input above is editable in the live Scrap/Rework Cost calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.