Make-Buy, Outsourcing & Network Design worked example

Make-Buy Breakeven Volume at 65% expected make-buy breakeven volume uptime: a worked example

Here is what the math looks like when conditions slip. We hold every other input steady and drop expected make-buy breakeven volume uptime to 65%, then walk the calculation through step by step. Estimate make-buy breakeven volume for make-buy, outsourcing and network design using production-ready inputs so teams can confirm whether capacity can cover demand before committing the schedule.

The inputs for this scenario

  • Make-buy breakeven volume output per cycle: 4 units / cycle (held at the documented default)
  • Available make-buy breakeven volume cycles: 480 cycles (held at the documented default)
  • Expected make-buy breakeven volume uptime: 65 % (the input this scenario stresses; the baseline uses 90)
  • Expected make-buy breakeven volume first-pass yield: 97 % (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Gross make-buy breakeven volume capacity = make-buy breakeven volume output per cycle × available make-buy breakeven volume cycles.
  • Good make-buy breakeven volume capacity works out to 1,211 units at these inputs, and this is the headline figure for the scenario.
  • Gross make-buy breakeven volume capacity works out to 1,920 units at these inputs.
  • Make-buy breakeven volume downtime loss works out to 672 units at these inputs.
  • Make-buy breakeven volume yield loss works out to 37.44 units at these inputs.

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 27.78% below the baseline at 1,211 units.
  • The practical read: the gap between this scenario and the baseline is entirely attributable to expected make-buy breakeven volume uptime, so recovering it is worth quantifying in dollars before considering equipment or staffing changes. It uses single average values for uptime and yield and treats them as independent multipliers; it does not capture demand variability, rework recovery, or capacity shared with other parts.

Results at a glance

  • Good make-buy breakeven volume capacity: 1,211 units (headline result)
  • Gross make-buy breakeven volume capacity: 1,920 units
  • Make-buy breakeven volume downtime loss: 672 units
  • Make-buy breakeven volume yield loss: 37.44 units

Run it with your numbers

  • To rerun this with your own numbers, open the live Make-Buy Breakeven Volume calculator, set expected make-buy breakeven volume uptime to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.