In this first chapter, you will learn about the make and buy options in a supply chain. Then you will become acquainted with the concepts of extended cost and full cost. You will learn how to calculate these with a basic quote dataset.
In this chapter, you will explore building a scenario analysis tool to examine how your cost calculations change as volumes change. You will create visualizations of how the full cost changes across the different potential production volumes.
You will learn how to assess internal costs manufacturing costs - the "Make" option in the Make versus Buy. You will also learn how to communicate your results.