Industrial Equipment, Machinery & Capital Goods worked example
Long Lead Item Exposure at 25% schedule exposure share: a worked example
Here is what the math looks like when conditions slip. We hold every other input steady and drop schedule exposure share to 25%, then walk the calculation through step by step. Estimate exposure from long lead purchased items using item count, extended cost per item, schedule exposure share, and fixed expediting cost.
The inputs for this scenario
- Long lead item count: 24 items (held at the documented default)
- Extended cost per long lead item: 8,500 $ / item (held at the documented default)
- Schedule exposure share: 25 % (the input this scenario stresses; the baseline uses 35)
- Fixed expediting and substitution cost: 18,000 $ (held at the documented default)
Working through the calculation
- The calculation starts from the formula this tool documents: Variable long lead item exposure = long lead item count × extended cost per long lead item × schedule exposure share.
- Total long lead item exposure works out to 69,000 $ at these inputs, and this is the headline figure for the scenario.
- Extended cost per long lead item works out to 2,875 $ / item at these inputs.
- Variable long lead item exposure works out to 51,000 $ at these inputs.
- Fixed expediting and substitution cost works out to 18,000 $ at these inputs.
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 22.82% below the baseline at 69,000 $.
- The practical read: the gap between this scenario and the baseline is entirely attributable to schedule exposure share, so recovering it is worth quantifying in dollars before considering equipment or staffing changes. It applies one schedule exposure share across all items; in reality risk varies by supplier and part, so high-risk items may warrant their own exposure line.
Results at a glance
- Total long lead item exposure: 69,000 $ (headline result)
- Extended cost per long lead item: 2,875 $ / item
- Variable long lead item exposure: 51,000 $
- Fixed expediting and substitution cost: 18,000 $
Run it with your numbers
- To rerun this with your own numbers, open the live Long Lead Item Exposure calculator, set schedule exposure share to your actual value, and adjust the remaining inputs to match your operation.
Last reviewed 2026-05-12.