CalculationVolume Pricing by Quantity
Volume Pricing by Quantity
Calculates per-part price at multiple lot sizes and distributes setup, programming, and fixture costs across quantity.
How to use the result
The price breaks reveal the cost structure. If the price barely falls, one-time costs are set too low; if it falls extremely sharply, a unit-cost component is probably missing.
At very large quantities, only material and cycle time determine the price. Further discounts are then a commercial decision, not a cost effect.
For reusable fixtures, include only the share borne by this order; otherwise the first customer pays for the entire investment.
Formulas
one-time cost = setup + programming + other one-time costsmanufacturing cost per part = direct cost / (1 − scrap) + one-time cost / quantitytotal cost = manufacturing cost · (1 + administration and sales)price = total cost · (1 + profit) or total cost / (1 − margin)Quantity for 5 % one-time cost share = 19 · one-time cost / manufacturing cost excluding one-time costs Sources: VDI 3258 Part 1 (cost accounting using machine-hour rates); Overhead costing according to standard managerial accounting practice (industrial costing)