Cold Chain & Temperature-Controlled Operations worked example

Temperature Excursion Cost at 40% disposition loss share of exposed value: a worked example

This scenario runs the temperature excursion cost calculation on the strong side: 40% disposition loss share of exposed value, with every other input held at its documented default. costing a refrigerated, frozen, or controlled-room temperature excursion

The inputs for this scenario

  • Cases or pallet equivalents exposed: 420 cases (unchanged)
  • Product value per exposed case: 38 $ / case (unchanged)
  • Disposition loss share of exposed value: 40 % (raised for this scenario; the documented default is 35)
  • Investigation, testing, disposal, and freight recovery costs: 1,200 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Variable temperature excursion cost = cases or pallet equivalents exposed × product value per exposed case × disposition exposure share) to the inputs above produces each figure below.
  • At this operating point the engine returns 7,584 $ for total temperature excursion cost, the number this scenario is built around.
  • At this operating point the engine returns 18.06 $ / piece for temperature excursion cost per shipment unit.
  • At this operating point the engine returns 6,384 $ for variable temperature excursion cost.
  • At this operating point the engine returns 1,200 $ for investigation, testing, disposal, and freight recovery costs.

How this compares with the baseline

  • Against the tool's baseline example, where disposition loss share of exposed value sits at 35% and the headline result is 6,786 $, this scenario comes in 11.76% above the baseline at 7,584 $.
  • Use it immediately after an excursion event to size the loss, or in planning to model worst-case exposure and justify data-logger and alarm investments. 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

  • total temperature excursion cost: 7,584 $ (headline result)
  • temperature excursion cost per shipment unit: 18.06 $ / piece
  • variable temperature excursion cost: 6,384 $
  • investigation, testing, disposal, and freight recovery costs: 1,200 $

Run it with your numbers

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

Last reviewed 2026-05-12.