Supplier Quality, Development & Audits worked example

Supplier Claim Recovery at 75% expected claim approval rate: a worked example

What does the result look like when expected claim approval rate reaches 75%? The full calculation is worked below with real intermediate numbers. A supplier quality engineer uses it to forecast realistic recovery before filing a chargeback against a defective shipment.

The inputs for this scenario

  • Claimable defective units: 1,200 units (unchanged)
  • Recoverable value per defective unit: 18 $/unit (unchanged)
  • Expected claim approval rate: 75 % (raised for this scenario; the documented default is 65)
  • Claim processing and admin adder: 500 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Net recovery = claimable units x recoverable value x approval rate% + processing adder) to the inputs above produces each figure below.
  • At this operating point the engine returns 16,700 $ for total supplier claim recovery cost, the number this scenario is built around.
  • At this operating point the engine returns 13.92 $ / piece for supplier claim recovery cost per unit.
  • At this operating point the engine returns 16,200 $ for variable supplier claim recovery cost.
  • At this operating point the engine returns 500 $ for fixed supplier claim recovery adder.

How this compares with the baseline

  • Against the tool's baseline example, where expected claim approval rate sits at 65% and the headline result is 14,540 $, this scenario comes in 14.86% above the baseline at 16,700 $.
  • A figure at this level is achievable when expected claim approval rate is genuinely sustained, not just peaked for a shift. The approval rate is an estimate; a hardened supplier legal team or a weak PPAP paper trail can drop actual approvals well below your assumed percentage, and the model ignores the labor cost of chasing the claim beyond the fixed adder.

Results at a glance

  • Total supplier claim recovery cost: 16,700 $ (headline result)
  • Supplier claim recovery cost per unit: 13.92 $ / piece
  • Variable supplier claim recovery cost: 16,200 $
  • Fixed supplier claim recovery adder: 500 $

Run it with your numbers

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

Last reviewed 2026-05-12.