Foundry & Forging worked example

Foundry Scrap Cost at 72% scrap cost allocation: a worked example

Suppose scrap cost allocation falls to 72%. This page works the full calculation at that level so you can see exactly which result moves and by how much. Estimate the cost impact of scrap castings, rejected forgings, failed molds, bad cores, or nonconforming heat lots.

The inputs for this scenario

  • Scrapped castings or forgings: 22 parts (held at the documented default)
  • Cost per scrapped unit: 145 $ / part (held at the documented default)
  • Scrap cost allocation: 72 % (the input this scenario stresses; the baseline uses 100)
  • Fixed containment or disposal cost: 800 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Total foundry scrap cost = scrapped castings or forgings × cost per scrapped unit × scrap cost allocation + fixed containment or disposal cost.
  • Total foundry scrap cost works out to 3,097 $ at these inputs, and this is the headline figure for the scenario.
  • Scrap cost per rejected unit works out to 141 $ / piece at these inputs.
  • Variable foundry scrap cost works out to 2,297 $ at these inputs.
  • Fixed containment or disposal cost works out to 800 $ at these inputs.

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 22.39% below the baseline at 3,097 $.
  • It computes total foundry scrap cost (variable reject cost plus a fixed containment or disposal charge) and the average scrap cost per rejected unit. 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 foundry scrap cost: 3,097 $ (headline result)
  • Scrap cost per rejected unit: 141 $ / piece
  • Variable foundry scrap cost: 2,297 $
  • Fixed containment or disposal cost: 800 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Foundry Scrap Cost calculator, set scrap cost allocation to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.