Single SKU Economic Model Variables


Moor Insights & Strategy created an economic model to demonstrate the impacts of having multiple handset SKUs on profitability.

Handset Single Sku Model Variables

The following are the variables used in the single SKU economic model.

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  • Market volume
  • # OEMs (equal share)
  • volume/OEM
  • Design/test time
  • Labor costs (for NRE)
  • BOM consolidation/efficiencies
  • Initial SKU staffing
  • Staffing for additional SKU
  • NRE (initial SKU)
  • NRE add’l SKUs)
  • Total NRE/SKU
  • Channel Variable costs/SKU
  • Unit volume/SKU
  • NRE/unit
  • eBOM+NRE/unit
  • Inventory Turns
  • Channel Fixed costs/SKU
  • Channel Variable costs to engage
  • Effective cost per unit
  • Unsold units per SKU
  • % unsold units repurposable
  • Units repurposed
  • Units unsold
  • WC tied up in Inventory
  • Constant market price
  • Cost plus price
  • Elasticity factor
  • Opportunity cost of unsold inventory