Procurement
Make vs Buy
Compare estimated make-versus-buy costs and calculate the quantity at which one option becomes less expensive.
Note: Constant costs.
Formula
Crossover = fixed ÷ (buy − variable).
FAQs
Negative?
Buying cheaper.
Compare estimated make-versus-buy costs and calculate the quantity at which one option becomes less expensive.
Crossover = fixed ÷ (buy − variable).
Buying cheaper.