Supply Chain & Procurement calculator
Inventory Obsolescence Cost Calculator
Estimate obsolete inventory cost from at-risk value and write-down rate. Quantity times rate times capture factor, plus a fixed adjustment, builds a defensible weighted cost.
What this calculator does
- Estimate obsolete inventory cost from at-risk value and write-down rate.
- Use it when inventory obsolescence cost in supply chain and procurement is being put through a supply chain and procurement weighted-cost review.
- Turns quantity or hours, rate or value, capture factor into a weighted cost for inventory obsolescence cost in supply chain and procurement.
Formula used
- Weighted cost = quantity × rate × capture factor + fixed adjustment
Inputs explained
- Quantity or hours: undefined
- Rate or value: undefined
- Capture factor: undefined
- Fixed adjustment: undefined
How to use the result
- Use it when inventory obsolescence cost in supply chain and procurement is being scored for capture or weighted cost.
- Risk-adjustments and discount rates are not in the formula; layer them on top for capital reviews.
Common questions
- Why use this inventory obsolescence cost tool for supply chain and procurement? Estimate obsolete inventory cost from at-risk value and write-down rate. You get a weighted cost you can defend before quoting, scheduling, or sign-off.
- Which assumptions drive the weighted cost? quantity or hours, rate or value, capture factor usually move the weighted cost most. Pull from measured supply chain and procurement runs, supplier data, and recent quotes rather than memory.
- How should I use the result? Use the weighted cost in the supply chain and procurement business case or quote build-up.
- What can throw the result off? Confirm the capture factor is honest; over-stated capture is the most common reason these models miss.
Last reviewed 2026-05-12.