Calculate Cost of Losses

The following example explains the calculation of Cost of Losses for a two products, Bottles and Caps. This value will appear in the Cost column in Production Summary workspace.

Consider the following table, which indicates the values that exist in the Period, Losses, and Margin fields in Production Data records for one product, Bottles. You can see that all of the records contain the same value in the Losses field and in the Margin field. Based on the formula to calculate Cost of Losses per day, the cost of losses per day for each is shown in the Cost of Losses column. In the last row, you can see the Total Cost for all days in the plan for Bottles. This value is displayed in the Cost column in the Production Summary workspace.

Period	Losses	Margin	Cost of Losses Equation	Cost of Losses
7/1/2016	10	5	(10 x 5)	50
7/2/2016	10	5	(10 x 5)	50
7/3/2016	10	5	(10 x 5)	50
7/4/2016	10	5	(10 x 5)	50
7/5/2016	10	5	(10 x 5)	50
7/6/2016	10	5	(10 x 5)	50
7/7/2016	10	5	(10 x 5)	50
7/8/2016	10	5	(10 x 5)	50
7/9/2016	10	5	(10 x 5)	50
Total Cost				450

Now, consider the following table, which indicates the values that exist in the Period, Losses, and Margin Value fields in Production Data record for second product, Caps. You can see that all of the records contain the same value in the Losses field and in the Margin field Based on the formula to calculate Cost of Losses per day, the cost of losses per day for each is shown in the Cost of Losses column. In the last row, you can see the Total Cost for all days in the plan for Caps. This value is displayed in the Cost column in the Production Summary workspace.

Period	Losses	Margin	Cost of Losses Equation	Cost of Losses
7/1/2015	10	4	(10 x 4)	40
7/2/2015	10	4	(10 x 4)	40
7/3/2015	10	4	(10 x 4)	40
7/4/2015	10	4	(10 x 4)	40
7/5/2015	10	4	(10 x 4)	40
7/6/2015	10	4	(10 x 4)	40
7/7/2015	10	4	(10 x 4)	40
7/8/2015	10	4	(10 x 4)	40
7/9/2015	10	4	(10 x 4)	40
Total Cost				360

Continuing with the previous example, the Cost Of Losses in the Production Summary workspace is the sum of all the values in the Cost column in the grid. Based on the calculations for both products, bottles and caps, the Cost Of Losses is calculated using the following equation:

Cost Of Losses = Cost of Losses (Bottles) + Cost of Losses (Caps)

Cost Of Losses = $450 + $360

Cost Of Losses = $810

Based on this data, you would see $810 next to the Cost Of Losses label in the Production Summary workspace, as shown in the following image.