Cryogenic Storage & LNG Equipment worked example

Cryogenic Warranty Reserve at 58% expected share of units that file a claim: a worked example

Suppose expected share of units that file a claim falls to 58%. This page works the full calculation at that level so you can see exactly which result moves and by how much. Estimate warranty reserve for cryogenic tanks, vaporizers, pumps, controls, vacuum components, or LNG transfer equipment.

The inputs for this scenario

  • Cryogenic units shipped under warranty: 100 units (held at the documented default)
  • Expected cost to service one warranty claim: 45 $ / unit (held at the documented default)
  • Expected share of units that file a claim: 58 % (the input this scenario stresses; the baseline uses 80)
  • Fixed warranty program reserve: 250 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Expected variable warranty exposure = units under warranty × warranty cost per claim unit × claim occurrence.
  • Total cryogenic warranty reserve works out to 2,860 $ at these inputs, and this is the headline figure for the scenario.
  • Warranty reserve per covered unit works out to 28.6 $ / piece at these inputs.
  • Expected variable warranty exposure works out to 2,610 $ at these inputs.
  • Fixed warranty program reserve works out to 250 $ at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where expected share of units that file a claim sits at 80% and the headline result is 3,850 $, this scenario comes in 25.71% below the baseline at 2,860 $.
  • It estimates the warranty reserve as units under warranty times per-claim cost times claim rate, plus a fixed program reserve. When the numbers land here, the stressed input is the lever to work; the walkthrough above shows exactly how much each output recovers as it climbs back toward the baseline.

Results at a glance

  • Total cryogenic warranty reserve: 2,860 $ (headline result)
  • Warranty reserve per covered unit: 28.6 $ / piece
  • Expected variable warranty exposure: 2,610 $
  • Fixed warranty program reserve: 250 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Cryogenic Warranty Reserve calculator, set expected share of units that file a claim to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.