Metals, Steel, Aluminum & Coil Processing worked example

Coil Storage Cost at 110% billable share of inventory: a worked example

Push billable share of inventory up to 110% and the picture changes. This example computes every intermediate figure at that operating point. Use it when a service center manager prices warehouse or toll storage and needs the carrying cost of coils held over time.

The inputs for this scenario

  • Coil-months in storage: 120 coil-months (unchanged)
  • Warehouse rate per coil-month: 8 $ / coil-month (unchanged)
  • Billable share of inventory: 110 % (raised for this scenario; the documented default is 100)
  • Fixed handling and crane cost: 200 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Variable storage cost = coil-months stored × storage rate × billable share) to the inputs above produces each figure below.
  • At this operating point the engine returns 1,256 $ for total storage cost, the number this scenario is built around.
  • At this operating point the engine returns 10.47 $ / piece for cost per coil-month.
  • At this operating point the engine returns 1,056 $ for variable storage cost.
  • At this operating point the engine returns 200 $ for fixed handling cost.

How this compares with the baseline

  • Against the tool's baseline example, where billable share of inventory sits at 100% and the headline result is 1,160 $, this scenario comes in 8.28% above the baseline at 1,256 $.
  • It multiplies coil-months by the storage rate and billable share for the variable cost, then adds fixed handling to give a total storage cost. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • Total storage cost: 1,256 $ (headline result)
  • Cost per coil-month: 10.47 $ / piece
  • Variable storage cost: 1,056 $
  • Fixed handling cost: 200 $

Run it with your numbers

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

Last reviewed 2026-05-12.