Risk Desk tools
Disruption cost calculator
Put a number on a supply interruption before it happens — daily impact, safety stock buffer, and one-time scramble costs, all in one figure.
Formula
Disruption Cost = Daily Impact × (Duration − Buffer) + One-Time Costs
Disruption scenario
Daily revenue/production impact
Value at risk for every day supply is unavailable
₹
Expected disruption duration
How long the supply interruption is expected to last
days
Safety stock buffer
Days of stock on hand before impact begins
days
One-time mitigation cost
Expediting, emergency freight, or alternate supplier premium
₹
Total disruption cost
₹0
Exposed days–
Impact cost–
Severity–
Cost accumulation over the disruption
This figure is most useful compared against the cost of prevention — a second qualified supplier, extra safety stock, or a supply continuity clause. If the disruption cost meaningfully exceeds what mitigation would cost per year of coverage, that’s the business case for acting before the disruption, not after.
Frequently asked questions
What is disruption cost?
The total financial impact of a supply interruption — lost production or revenue for every day supply is unavailable, plus one-time costs like expedited freight or an emergency supplier premium.
How does safety stock reduce disruption cost?
Safety stock buys time before a disruption affects production, so days of stock on hand are subtracted from the disruption duration before daily impact costs accumulate.
Why calculate this before a disruption happens?
Knowing the cost in advance helps justify safety stock, dual sourcing, or contract protections by comparing their cost against the exposure they prevent.
Is this disruption cost calculator free to use?
Yes. It runs entirely in your browser, needs no account, and nothing you enter is stored or transmitted.