Which units belong in the affected count?

Every unit you cannot ship as-is because of the defect, including units already sorted out. Suspect units still inside the lot count if you must inspect them. Use the containment record, not an estimate made before sorting.

Why does exposure per unit fall as the lot grows?

Fixed containment and internal adders are paid once per episode. Spread over 2,500 affected units, $4,200 adds $1.68 each; over 400 units it adds $10.50 each. Variable cost per unit is unchanged.

Is this the same as a supplier chargeback?

This page sizes the full exposure, not the amount a supplier will accept. A chargeback often covers only part of it after negotiation, so use the total as the opening position and the per-unit figure in talks.

When should I use the per-unit or the total?

Use the total to decide whether containment is worth funding and to book the cost. Use the per-unit figure to compare episodes of different sizes and to test the target. The lot share shows how much of the receipt is at risk.

Consumer Goods & Durable Products Manufacturing calculator

Supplier Defect Exposure Calculator

Size what a supplier defect costs: affected units times variable cost per unit, plus fixed containment and internal adders. The page shows the affected share of the lot and the signed gap to your target.

What this calculator does

Total supplier defect exposure from affected units, variable cost and fixed adders, with the share of the lot and the gap to a per-unit target.

Formula used

Variable defect cost = affected units × variable cost per affected unit
Total exposure = variable cost + fixed containment + internal adders
Exposure per affected unit = total exposure ÷ affected units
Affected share of the lot = affected units ÷ received lot × 100
Exposure gap = target per unit − exposure per affected unit

Inputs explained

Affected Supplier Parts or Finished Units: Parts or finished units the defect affects.
Units Received in the Affected Lot: All units received in the shipment holding the defect.
Variable Defect Cost per Affected Unit: Rework, replacement or credit cost for one affected unit.
Fixed Supplier Containment Cost: Sorting, quarantine and supplier containment charged once.
Internal Labor, Inspection and Overhead Adder: Your inspection, labor and overhead added for the episode.
Target Exposure per Affected Unit: Exposure per affected unit the claim should stay under.

How to use the result

Best suited to sizing a supplier chargeback claim, choosing containment versus sorting, deciding a rework versus scrap path.
Line-down and customer penalties are excluded; add them as internal adders if booked. The affected count must be complete; an open sort can understate the true share.

Common questions

Which units belong in the affected count? Every unit you cannot ship as-is because of the defect, including units already sorted out. Suspect units still inside the lot count if you must inspect them. Use the containment record, not an estimate made before sorting.
Why does exposure per unit fall as the lot grows? Fixed containment and internal adders are paid once per episode. Spread over 2,500 affected units, $4,200 adds $1.68 each; over 400 units it adds $10.50 each. Variable cost per unit is unchanged.
Is this the same as a supplier chargeback? This page sizes the full exposure, not the amount a supplier will accept. A chargeback often covers only part of it after negotiation, so use the total as the opening position and the per-unit figure in talks.
When should I use the per-unit or the total? Use the total to decide whether containment is worth funding and to book the cost. Use the per-unit figure to compare episodes of different sizes and to test the target. The lot share shows how much of the receipt is at risk.

Last reviewed 2026-10-01.