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What will this design change strand in inventory?

Compare usable old-design stock, rework recovery and the cash cost of an immediate cutover.

Example scenario

Editable demonstration inputs, not verified industry benchmarks. Enable JavaScript to calculate your own scenario.

Old-design inventory units
10,000
Old units consumed before cutover
3,000
Inventory book cost / unit
$25
Remaining units recoverable through rework
60 %
Rework cash cost / recoverable unit
$8
Salvage value / unrecoverable unit
$2
Qualification & change implementation cost
$35,000
Net incremental transition cash cost$63,000

Example result only, not a forecast or promise.

Old-design units remaining
7,000
Unrecoverable inventory book loss
$64,400
Reworkable inventory units
4,200

What to do with this result

Agree a physical cutover, traceability and depletion plan; accounting write-down and incremental cash are different impacts.

Know what is inside the model.

Planning model, not personalized financial advice. Your inputs remain in your browser.

Calculation method

Stranded book value = remaining units × unrecoverable share × (book cost − salvage). Transition cash = reworkable units × rework cost + implementation − salvage proceeds.

Assumptions and limitations

  • Example inputs are editable scenarios, not Aryo results or independently verified industry benchmarks.
  • Recovered capacity is not booked revenue or automatic cash savings. Validate the bottleneck, quality and demand before monetizing output.

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