Industrial Enzymes & Bio-Ingredients worked example

Batch Failure Cost at 86% rejected or downgraded batch share: a worked example in industrial enzymes & bio-ingredients

What does the result look like when rejected or downgraded batch share reaches 86%? The full calculation is worked below with real intermediate numbers. Use it when evaluating contamination, low activity, failed release, out of specification moisture, or customer rejection scenarios.

The inputs for this scenario

  • Finished or in-process batch size: 5,200 kg (unchanged)
  • Enzyme cost per kg or activity basis: 16 $ / kg (unchanged)
  • Rejected or downgraded batch share: 86 % (raised for this scenario; the documented default is 75)
  • Fixed investigation and disposal cost: 18,000 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Variable batch failure cost = finished or in-process batch size × cost per kg or activity basis × rejected or downgraded batch share) to the inputs above produces each figure below.
  • At this operating point the engine returns 89,552 $ for total batch failure cost, the number this scenario is built around.
  • At this operating point the engine returns 17.22 $ / kg for cost per kg or activity basis.
  • At this operating point the engine returns 71,552 $ for variable batch failure cost.
  • At this operating point the engine returns 18,000 $ for fixed investigation and disposal cost.

How this compares with the baseline

  • Against the tool's baseline example, where rejected or downgraded batch share sits at 75% and the headline result is 80,400 $, this scenario comes in 11.38% above the baseline at 89,552 $.
  • A figure at this level is achievable when rejected or downgraded batch share is genuinely sustained, not just peaked for a shift. It treats the failure share as a single value of finished material; it does not separately model partial recovery, reprocessing yield, or downstream customer-penalty and allocation-stockout costs.

Results at a glance

  • Total batch failure cost: 89,552 $ (headline result)
  • Cost per kg or activity basis: 17.22 $ / kg
  • Variable batch failure cost: 71,552 $
  • Fixed investigation and disposal cost: 18,000 $

Run it with your numbers

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

Last reviewed 2026-05-12.