Foundry & Forging worked example

Foundry Scrap Cost at 110% scrap cost allocation: a worked example

What does the result look like when scrap cost allocation reaches 110%? The full calculation is worked below with real intermediate numbers. Use it when scrap affects quote margin, production cost, root-cause priority, or customer recovery for a casting or forging program.

The inputs for this scenario

  • Scrapped castings or forgings: 22 parts (unchanged)
  • Cost per scrapped unit: 145 $ / part (unchanged)
  • Scrap cost allocation: 110 % (raised for this scenario; the documented default is 100)
  • Fixed containment or disposal cost: 800 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Total foundry scrap cost = scrapped castings or forgings × cost per scrapped unit × scrap cost allocation + fixed containment or disposal cost) to the inputs above produces each figure below.
  • At this operating point the engine returns 4,309 $ for total foundry scrap cost, the number this scenario is built around.
  • At this operating point the engine returns 196 $ / piece for scrap cost per rejected unit.
  • At this operating point the engine returns 3,509 $ for variable foundry scrap cost.
  • At this operating point the engine returns 800 $ for fixed containment or disposal cost.

How this compares with the baseline

  • Against the tool's baseline example, where scrap cost allocation sits at 100% and the headline result is 3,990 $, this scenario comes in 7.99% above the baseline at 4,309 $.
  • A figure at this level is achievable when scrap cost allocation is genuinely sustained, not just peaked for a shift. The cost per scrapped unit you enter is only as good as your fully loaded estimate — if it omits melt energy, core sand, or downstream machining already invested in the part, total scrap cost will be understated.

Results at a glance

  • Total foundry scrap cost: 4,309 $ (headline result)
  • Scrap cost per rejected unit: 196 $ / piece
  • Variable foundry scrap cost: 3,509 $
  • Fixed containment or disposal cost: 800 $

Run it with your numbers

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

Last reviewed 2026-05-12.