Supply Chain & Procurement worked example

ABC Inventory Value at 92% value capture factor: a worked example

This scenario runs the abc inventory value calculation on the strong side: 92% value capture factor, with every other input held at its documented default. Use it when abc inventory value in supply chain and procurement is being put through a supply chain and procurement weighted-cost review.

The inputs for this scenario

  • Annual units consumed: 100 units (unchanged)
  • Unit cost: 45 $ / unit (unchanged)
  • Value capture factor: 92 % (raised for this scenario; the documented default is 80)
  • Fixed carrying adder: 250 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Weighted cost = quantity × rate × capture factor + fixed adjustment) to the inputs above produces each figure below.
  • At this operating point the engine returns 4,390 $ for total abc inventory value cost, the number this scenario is built around.
  • At this operating point the engine returns 43.9 $ / piece for abc inventory value cost per unit.
  • At this operating point the engine returns 4,140 $ for variable abc inventory value cost.
  • At this operating point the engine returns 250 $ for fixed abc inventory value adder.

How this compares with the baseline

  • Against the tool's baseline example, where value capture factor sits at 80% and the headline result is 3,850 $, this scenario comes in 14.03% above the baseline at 4,390 $.
  • Use it when building or refreshing an ABC classification, prioritizing safety-stock investment, or setting cycle-count frequency by dollar velocity. Treat this as a target state: the delta against the baseline quantifies what the improvement is worth before you commit to chasing it.

Results at a glance

  • Total abc inventory value cost: 4,390 $ (headline result)
  • Abc inventory value cost per unit: 43.9 $ / piece
  • Variable abc inventory value cost: 4,140 $
  • Fixed abc inventory value adder: 250 $

Run it with your numbers

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

Last reviewed 2026-05-12.