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..


Marian Suskiewicz

Aby ocenić Twoje obliczenia proszę o podanie modelu (wzoru) do obliczeń, jakie parametry i zmienne rynkowe są uwzględnione przy szacowaniu ceny jednego egzemplarza .

Zasady podane są oczywiste , większa produkcja – cena maleje.


Looks like after 500pieces the cost is stabilising. Probably because at some point you are not capable of lower the prices of parts and/or manufacturing more. The lowest price is never zero ;)