What-If and Scope

What-If Demand

Changing demand can change which option has the lower cost.

highlighted = computed this step

What-If Demand

The what-if demand is 50.

what-if demand=50\text{what-if demand}=50
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

What-If Totals

The what-if make total is 350 and the buy total is 300.

recompute both options\text{recompute both options}
What-if totalsThe what-if recomputes both totals at the lower demand.what-if totalsvaluemake total350buy total300winning margin50

Buy Wins

Buying wins by 50 in the what-if.

what-if winner=buy\text{what-if winner}=\text{buy}
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