What-If and Scope

Honest Cost Scope

The final lesson states the boundary: deterministic cost arithmetic only.

highlighted = computed this step

Cost Only

The comparison uses only deterministic cost arithmetic.

cost arithmetic only\text{cost arithmetic only}
Make-or-buy comparisonThe chart compares base and what-if totals.what-if comparisonmake 500; buy 600; winner makemeasurevaluemeaningdemand100unitsfixed cost200make optionvariable cost3per unitbuy price6per unitbreak-even demand200/3make equals buymakemake 500buybuy 600what-if makewhat-if make 350what-if buywhat-if buy 300base winner make by 100; what-if winner buy by 50

Not Capacity

It does not model capacity, quality, risk, or supplier reliability.

capacity and reliability outside scope\text{capacity and reliability outside scope}
Make-or-buy comparisonThe chart compares base and what-if totals.what-if comparisonmake 500; buy 600; winner makemeasurevaluemeaningdemand100unitsfixed cost200make optionvariable cost3per unitbuy price6per unitbreak-even demand200/3make equals buymakemake 500buybuy 600what-if makewhat-if make 350what-if buywhat-if buy 300base winner make by 100; what-if winner buy by 50

Not Strategy

It does not decide strategic fit or implementation constraints.

strategic fit remains outside scope\text{strategic fit remains outside scope}
Make-or-buy comparisonThe chart compares base and what-if totals.what-if comparisonmake 500; buy 600; winner makemeasurevaluemeaningdemand100unitsfixed cost200make optionvariable cost3per unitbuy price6per unitbreak-even demand200/3make equals buymakemake 500buybuy 600what-if makewhat-if make 350what-if buywhat-if buy 300base winner make by 100; what-if winner buy by 50

Honesty Note

This is deterministic cost arithmetic only. It does not model capacity, quality, risk, supplier reliability, strategic fit, or implementation constraints.

deterministic cost arithmetic only\text{deterministic cost arithmetic only}
Make-or-buy comparisonThe chart compares base and what-if totals.what-if comparisonmake 500; buy 600; winner makemeasurevaluemeaningdemand100unitsfixed cost200make optionvariable cost3per unitbuy price6per unitbreak-even demand200/3make equals buymakemake 500buybuy 600what-if makewhat-if make 350what-if buywhat-if buy 300base winner make by 100; what-if winner buy by 50