Make-Buy, Outsourcing & Network Design worked example

Make-Buy Breakeven Volume at 99% expected make-buy breakeven volume uptime: a worked example

Push expected make-buy breakeven volume uptime up to 99% and the picture changes. This example computes every intermediate figure at that operating point. Use it when make-buy breakeven volume in make-buy, outsourcing and network design is being asked to take on more work and you need to know if there is room.

The inputs for this scenario

  • Make-buy breakeven volume output per cycle: 4 units / cycle (unchanged)
  • Available make-buy breakeven volume cycles: 480 cycles (unchanged)
  • Expected make-buy breakeven volume uptime: 99 % (raised for this scenario; the documented default is 90)
  • Expected make-buy breakeven volume first-pass yield: 97 % (unchanged)

Working through the calculation

  • Applying the documented formula (Gross make-buy breakeven volume capacity = make-buy breakeven volume output per cycle × available make-buy breakeven volume cycles) to the inputs above produces each figure below.
  • At this operating point the engine returns 1,844 units for good make-buy breakeven volume capacity, the number this scenario is built around.
  • At this operating point the engine returns 1,920 units for gross make-buy breakeven volume capacity.
  • At this operating point the engine returns 19.2 units for make-buy breakeven volume downtime loss.
  • At this operating point the engine returns 57.02 units for make-buy breakeven volume yield loss.

How this compares with the baseline

  • Against the tool's baseline example, where expected make-buy breakeven volume uptime sits at 90% and the headline result is 1,676 units, this scenario comes in 10% above the baseline at 1,844 units.
  • It multiplies cycle output by available cycles for gross capacity, then derates that by uptime and first-pass yield to give realistic good-unit output. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • Good make-buy breakeven volume capacity: 1,844 units (headline result)
  • Gross make-buy breakeven volume capacity: 1,920 units
  • Make-buy breakeven volume downtime loss: 19.2 units
  • Make-buy breakeven volume yield loss: 57.02 units

Run it with your numbers

  • Every input above is editable in the live Make-Buy Breakeven Volume calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.