Supplier Quality, Development & Audits worked example

Supplier Claim Recovery at 47% expected claim approval rate: a worked example

This worked example runs the supplier claim recovery numbers for a tougher week than the baseline: 47% expected claim approval rate instead of the typical 65%. Estimates the net dollar recovery achievable from a supplier chargeback claim after expected approval and processing.

The inputs for this scenario

  • Claimable defective units: 1,200 units (held at the documented default)
  • Recoverable value per defective unit: 18 $/unit (held at the documented default)
  • Expected claim approval rate: 47 % (the input this scenario stresses; the baseline uses 65)
  • Claim processing and admin adder: 500 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Net recovery = claimable units x recoverable value x approval rate% + processing adder.
  • Total supplier claim recovery cost works out to 10,652 $ at these inputs, and this is the headline figure for the scenario.
  • Supplier claim recovery cost per unit works out to 8.88 $ / piece at these inputs.
  • Variable supplier claim recovery cost works out to 10,152 $ at these inputs.
  • Fixed supplier claim recovery adder works out to 500 $ at these inputs.

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 26.74% below the baseline at 10,652 $.
  • Use it before filing a debit memo or 8D chargeback, when building a supplier scorecard cost line, or when negotiating a settlement on a batch of nonconforming parts. A result at this level usually justifies acting on the stressed input before touching anything else, because every other figure in the table is downstream of it.

Results at a glance

  • Total supplier claim recovery cost: 10,652 $ (headline result)
  • Supplier claim recovery cost per unit: 8.88 $ / piece
  • Variable supplier claim recovery cost: 10,152 $
  • Fixed supplier claim recovery adder: 500 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Supplier Claim Recovery calculator, set expected claim approval rate to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.