THE FEUTEX TOOLKIT

Production Rework Recovery Case

Compare scrapping defective units with rework cost, recovery yield and saleable value.

Supply Chain workspace● Runs in your browser

01 Your input

DefectsitemsScrap valuecurrencyRework costcurrencyRecovery%Recovered valuecurrency

02 Your result

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Result data

Formula

Scrap proceeds = v.defects*v.scrap_value ; Rework net = v.defects*(v.recovery/100*v.recovered_value+(1-v.recovery/100)*v.scrap_value-v.rework_cost) ; Rework advantage = v.defects*(v.recovery/100*v.recovered_value+(1-v.recovery/100)*v.scrap_value-v.rework_cost-v.scrap_value)

Sources and model references

https://openstax.org/books/principles-managerial-accounting/pages/10-3-evaluate-and-determine-whether-to-make-or-buy-a-component

Worked example

Inputs

Defects: 200 items
Scrap value: 2 currency
Rework cost: 5 currency
Recovery: 80 %
Recovered value: 15 currency

Expected results

Scrap proceeds: 400 currency
Rework net: 1480 currency
Rework advantage: 1080 currency

Load the example in the workspace to reproduce these results. Display rounding does not change the underlying calculation.

How to use this tool

Enter your own assumptions using a consistent currency and period.
Review the scenario outputs and compare alternative inputs.
Check the stated model limits before using the result in an operating plan.

Try this example

{
  "defects": 200,
  "scrap_value": 2,
  "rework_cost": 5,
  "recovery": 80,
  "recovered_value": 15
}

Accuracy and scope

Deterministic planning scenario; inputs are assumptions, not forecasts. Excludes taxes, financing, legal requirements and costs not explicitly entered. Source explains the underlying planning framework; this specific scenario arithmetic is original.

Is my data uploaded?

This tool runs locally in your browser. Input and output are not sent to a processing server. Copy or download your result before leaving the page.