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.

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 (\$)

## How to Calculate Value of Lost Load?

The following steps outline how to calculate the Value of Lost Load.

1. First, determine the current price paid by the customer (\$).
2. Next, determine the price the customer is willing to pay to avoid disruption in service (\$).
3. Next, gather the formula from above = VoLL = PAD – CP.
4. Finally, calculate the Value of Lost Load.
5. 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 = ?