Divided Over Total Quantity
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Setup cost is divided by the total number of parts (Setup cost per part = Setup cost / Total number of parts). For example, if the setup cost is 100 and the total number of parts is 100, then the setup cost per part is 1.
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Divided Over Lot Size
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Setup cost is divided by the lot size (Setup cost per part = Setup cost / Lot size). For example, if the setup cost is 100 and the lot size is 10, then the setup cost per part is 10.
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Applied Once Per Part
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Setup cost is applied per part
(Setup cost per part = Setup cost). For example, if the setup cost is 100 then the setup cost per part is 100.
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