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THE FEUTEX TOOLKIT

Make or Buy Cost Comparison

Compare avoidable in-house production cost with a supplier quote and transition costs.

Business workspace● Runs in your browser
01 Your input
02 Your result
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FormulaMake cost = v.quantity*(v.material+v.labor)+v.avoidable_overhead ; Buy cost = v.quantity*v.supplier+v.transition ; Buy premium = v.quantity*v.supplier+v.transition-v.quantity*(v.material+v.labor)-v.avoidable_overhead
Sources and model references

Worked example

Inputs

Quantity
1000 items
Material
8 currency/item
Labor
5 currency/item
Avoidable overhead
2000 currency
Supplier
16 currency/item
Transition
500 currency

Expected results

Make cost
15000 currency
Buy cost
16500 currency
Buy premium
1500 currency

Load the example in the workspace to reproduce these results. Display rounding does not change the underlying calculation.

How to use this tool

  1. Enter your own assumptions using a consistent currency and period.
  2. Review the scenario outputs and compare alternative inputs.
  3. Check the stated model limits before using the result in an operating plan.

Try this example

{
  "quantity": 1000,
  "material": 8,
  "labor": 5,
  "avoidable_overhead": 2000,
  "supplier": 16,
  "transition": 500
}

Accuracy and scope

Deterministic planning scenario; inputs are assumptions, not forecasts. Excludes taxes, financing, legal requirements and costs not explicitly entered. Source explains the underlying planning framework; this specific scenario arithmetic is original.

Is my data uploaded?

This tool runs locally in your browser. Input and output are not sent to a processing server. Copy or download your result before leaving the page.