Why is the quantity related to the customization of iron box processing?

Many users will find when shopping that the more quantity they buy, the cheaper the unit price, which confuses them: why is the same product cheaper with more quantity? This situation is also common in the manufacturing industry. Taking iron boxes as an example, we usually recommend that customers produce more at one time, because although the manufacturing process is the same, the more quantity, the lower the cost of a single product. Many customers do not understand why the price of customized iron boxes is high when the quantity is small.

Let's illustrate this with printing costs:

Printing to meet the number of special editions: Assume that the number of special editions for a large-size iron box is 6,000, 1,500 sheets of iron are required, and four iron boxes can be arranged on each sheet of iron. If the minimum charge of the printing factory is 6,000 yuan, then the printing cost of each iron box is 1 yuan.

Imposition printing that is not enough for the number of special editions: If the order quantity is 500, then the minimum charge of 6,000 yuan will be distributed to other iron boxes, which means that the printing cost of 500 iron boxes will be between 1 yuan and 12 yuan.

The situation of making special editions but not enough: If the order quantity is 500, and the printing factory requires at least 1,500 iron sheets to print, this means that only one set of iron boxes will be arranged on each iron sheet, and 5,500 iron boxes will be wasted. Both the printing fee and the iron material fee are wasted. If the printing factory's minimum charge is 6,000 yuan, then 6,000 yuan divided by 500 iron boxes, the printing cost of each iron box is 12 yuan.

In terms of large-scale production (taking 500 and 6,000 large-size iron boxes as an example):

The situation of 6,000 orders: If the production time is one day, then after all the debugging is completed, the production management personnel can take out their energy to arrange and manage other orders, and the production volume and efficiency are greatly improved.

Factory process after iron material printing: After the iron material is printed, it needs to go through the processes of cutting, mold installation, mold trial adjustment, mass production, and packaging. Before installing the mold, the existing mold needs to be taken offline. It takes 2-3 days to load and unload the mold and adjust the mold. After all the debugging goes smoothly, the production of 500 orders is completed in less than an hour. At the same time, the master needs to remove the mold of this iron box and continue to install other size molds. Simply put, during this order period, the master can only focus all his energy on 500 orders, and has no time to take care of other orders, which naturally leads to higher costs for these 500 orders.

In general: 500 orders have low production volume, low efficiency, and high cost; while 6000 orders have high production volume, high efficiency, and low cost.

As a canning factory, there are several procedures that are indispensable and cannot be ignored in the entire iron box processing process, which also generates fixed costs. There is a fixed cost for iron box printing patterns in the printing factory. There is also a minimum cost for making goods in the factory after the iron box is printed. After the iron box is typed, it is printed on the machine in the printing factory. The printing factory requires a minimum of 1,500 iron sheets to print. Even if a set of iron boxes is arranged on each iron sheet, the minimum order quantity is 1,500.