Nutraceuticals & Functional Foods worked example

Scrap Cost at 2.3% scrap rate at qc release: a worked example in nutraceuticals & functional foods

Push scrap rate at qc release up to 2.3% and the picture changes. This example computes every intermediate figure at that operating point. A production or cost team needs the dollar value of scrap in a batch, including disposal, to decide whether scrap is material enough to investigate.

The inputs for this scenario

  • Batch quantity (capsules, tablets, or sachets): 20,000 units (unchanged)
  • Fully loaded cost per finished unit: 0.45 $ / unit (unchanged)
  • Scrap rate at QC release: 2.3 % (raised for this scenario; the documented default is 2)
  • Fixed disposal and deviation investigation cost: 150 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Scrapped material cost = batch quantity × cost per unit × scrap rate) to the inputs above produces each figure below.
  • At this operating point the engine returns 357 $ for total scrap cost, the number this scenario is built around.
  • At this operating point the engine returns 0.02 $ / unit for scrap cost per unit.
  • At this operating point the engine returns 207 $ for scrapped material cost.
  • At this operating point the engine returns 150 $ for fixed disposal and investigation cost.

How this compares with the baseline

  • Against the tool's baseline example, where scrap rate at qc release sits at 2% and the headline result is 330 $, this scenario comes in 8.18% above the baseline at 357 $.
  • It computes the total dollar loss from a scrapped batch as scrapped material value plus the fixed disposal and investigation 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 scrap cost: 357 $ (headline result)
  • Scrap cost per unit: 0.02 $ / unit
  • Scrapped material cost: 207 $
  • Fixed disposal and investigation cost: 150 $

Run it with your numbers

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

Last reviewed 2026-05-12.