Industrial Equipment, Machinery & Capital Goods worked example

Long Lead Item Exposure at 40% schedule exposure share: a worked example

This scenario runs the long lead item exposure calculation on the strong side: 40% schedule exposure share, with every other input held at its documented default. Use it when reviewing motors, drives, PLCs, gearboxes, castings, fabricated frames, panels, or specialty components that can hold up a build.

The inputs for this scenario

  • Long lead item count: 24 items (unchanged)
  • Extended cost per long lead item: 8,500 $ / item (unchanged)
  • Schedule exposure share: 40 % (raised for this scenario; the documented default is 35)
  • Fixed expediting and substitution cost: 18,000 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Variable long lead item exposure = long lead item count × extended cost per long lead item × schedule exposure share) to the inputs above produces each figure below.
  • At this operating point the engine returns 99,600 $ for total long lead item exposure, the number this scenario is built around.
  • At this operating point the engine returns 4,150 $ / item for extended cost per long lead item.
  • At this operating point the engine returns 81,600 $ for variable long lead item exposure.
  • At this operating point the engine returns 18,000 $ for fixed expediting and substitution cost.

How this compares with the baseline

  • Against the tool's baseline example, where schedule exposure share sits at 35% and the headline result is 89,400 $, this scenario comes in 11.41% above the baseline at 99,600 $.
  • Use it during procurement planning and schedule risk reviews, before you commit a delivery date that depends on long-lead parts. Treat this as a target state: the delta against the baseline quantifies what the improvement is worth before you commit to chasing it.

Results at a glance

  • Total long lead item exposure: 99,600 $ (headline result)
  • Extended cost per long lead item: 4,150 $ / item
  • Variable long lead item exposure: 81,600 $
  • Fixed expediting and substitution cost: 18,000 $

Run it with your numbers

  • Every input above is editable in the live Long Lead Item Exposure calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.