Unit cost in mass production

In my first steps of mass production I have created a simple simulation of unit cost per production volume. On the plot we can see a price for two version of the final product – basic and full featured.


Looks interesting, as components cost highly depends on the order volume, prices can go down when purchasing more and manufacturing more – so called scale effect can bring more products for a lower price per unit. Next step is to negotiate better prices in high volume orders and choose between different distributors, then try the automated machine manufacturing..