Decision category

Sourcing decisions

Make vs buy, automation vs labor, and outsource vs expand-capacity decisions.

• Make vs Buy Decision Compare fully loaded make cost, including constraint opportunity cost, against a supplier buy price.
• Automation vs Labor Comparator Compares automating against continuing with labor on total annual cost, including the annualized capital cost, not just automation's lower per-unit operating cost.
• Outsource vs Expand Capacity Compares outsourcing against expanding in-house capacity on total annual cost, including the expansion's annualized capital cost, not just its lower per-unit operating cost.