Packaging & Logistics worked example

Damage Rate Cost with damaged units in the period of 150 units: a worked example

Push damaged units in the period up to 150 units and the picture changes. This example computes every intermediate figure at that operating point. Use it to quantify damage, justify better packaging or handling, and target the lanes or SKUs driving the most loss.

The inputs for this scenario

  • Damaged units in the period: 150 units (raised for this scenario; the documented default is 60)
  • Replacement cost per damaged unit: 25 $ / unit (unchanged)
  • Returns freight cost: 150 $ (unchanged)
  • Claims and admin handling cost: 100 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Total damage cost = damaged units × cost per damaged unit + returns freight cost + claims and admin cost) to the inputs above produces each figure below.
  • At this operating point the engine returns 4,000 $ for total damage cost, the number this scenario is built around.
  • At this operating point the engine returns 26.67 $ / unit for cost per damaged unit.
  • At this operating point the engine returns 3,750 $ for replacement cost.
  • At this operating point the engine returns 250 $ for returns and claims handling cost.

How this compares with the baseline

  • Against the tool's baseline example, where damaged units in the period sits at 60 units and the headline result is 1,750 $, this scenario comes in 129% above the baseline at 4,000 $.
  • It sums replacement value, return freight, and claims and admin cost into a total damage cost, then divides by damaged units to give a fully loaded cost per damaged unit. 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 damage cost: 4,000 $ (headline result)
  • Cost per damaged unit: 26.67 $ / unit
  • Replacement cost: 3,750 $
  • Returns and claims handling cost: 250 $

Run it with your numbers

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

Last reviewed 2026-05-12.