Elevators, Escalators & Vertical Transport Equipment worked example

Service Parts Reserve at 92% reserve coverage captured: a worked example

Push reserve coverage captured up to 92% and the picture changes. This example computes every intermediate figure at that operating point. a service manager or finance lead needs to reserve parts cost for installed vertical transport equipment

The inputs for this scenario

  • Covered elevator or escalator units: 240 units (unchanged)
  • Expected service parts cost per unit: 185 $ / unit (unchanged)
  • Reserve coverage captured: 92 % (raised for this scenario; the documented default is 80)
  • Fixed stocking, logistics, and obsolescence cost: 4,500 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Variable service parts reserve = covered units × expected service parts cost per unit × reserve coverage captured) to the inputs above produces each figure below.
  • At this operating point the engine returns 45,348 $ for total service parts reserve, the number this scenario is built around.
  • At this operating point the engine returns 189 $ / unit for reserve cost per covered unit.
  • At this operating point the engine returns 40,848 $ for variable service parts reserve.
  • At this operating point the engine returns 4,500 $ for stocking and logistics reserve.

How this compares with the baseline

  • Against the tool's baseline example, where reserve coverage captured sits at 80% and the headline result is 40,020 $, this scenario comes in 13.31% above the baseline at 45,348 $.
  • It computes the total dollar reserve needed to cover service parts across a fleet, combining per-unit parts cost scaled by coverage with a fixed stocking and logistics overhead. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • Total service parts reserve: 45,348 $ (headline result)
  • Reserve cost per covered unit: 189 $ / unit
  • Variable service parts reserve: 40,848 $
  • Stocking and logistics reserve: 4,500 $

Run it with your numbers

  • Every input above is editable in the live Service Parts Reserve calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.