Supply Chain & Procurement worked example

ABC Inventory Value at 58% value capture factor: a worked example

Suppose value capture factor falls to 58%. This page works the full calculation at that level so you can see exactly which result moves and by how much. Estimate ABC inventory value from item count and average value.

The inputs for this scenario

  • Annual units consumed: 100 units (held at the documented default)
  • Unit cost: 45 $ / unit (held at the documented default)
  • Value capture factor: 58 % (the input this scenario stresses; the baseline uses 80)
  • Fixed carrying adder: 250 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Weighted cost = quantity × rate × capture factor + fixed adjustment.
  • Total abc inventory value cost works out to 2,860 $ at these inputs, and this is the headline figure for the scenario.
  • Abc inventory value cost per unit works out to 28.6 $ / piece at these inputs.
  • Variable abc inventory value cost works out to 2,610 $ at these inputs.
  • Fixed abc inventory value adder works out to 250 $ at these inputs.

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 25.71% below the baseline at 2,860 $.
  • It computes a SKU's weighted annual inventory value from usage times unit cost times a capture factor, plus any fixed carrying adder. When the numbers land here, the stressed input is the lever to work; the walkthrough above shows exactly how much each output recovers as it climbs back toward the baseline.

Results at a glance

  • Total abc inventory value cost: 2,860 $ (headline result)
  • Abc inventory value cost per unit: 28.6 $ / piece
  • Variable abc inventory value cost: 2,610 $
  • Fixed abc inventory value adder: 250 $

Run it with your numbers

  • To rerun this with your own numbers, open the live ABC Inventory Value calculator, set value capture factor to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.