Enter the current price paid by the customer ($) and the price the customer is willing to pay to avoid disruption in service ($) into the Value of Lost Load Calculator. The calculator will evaluate the Value of Lost Load.
Value of Lost Load Formula
The following two example problems outline the steps and information needed to calculate the Value of Lost Load.
VoLL = PAD - CP
Variables:
- VoLL is the Value of Lost Load ($)
- CP is the current price paid by the customer ($)
- PAD is the price the customer is willing to pay to avoid disruption in service ($)
To calculate the value of lost load, subtract the price the customer is willing to pay to avoid disruption in service from the current price paid.
How to Calculate Value of Lost Load?
The following steps outline how to calculate the Value of Lost Load.
- First, determine the current price paid by the customer ($).
- Next, determine the price the customer is willing to pay to avoid disruption in service ($).
- Next, gather the formula from above = VoLL = PAD – CP.
- Finally, calculate the Value of Lost Load.
- After inserting the variables and calculating the result, check your answer with the calculator above.
Example Problem :
Use the following variables as an example problem to test your knowledge.
current price paid by the customer ($) = 300
price the customer is willing to pay to avoid disruption in service ($) = 500
VoLL = PAD – CP = ?
