Find the make-versus-buy crossover and test its sensitivity.

Instruction: Calculate the three-year break-even volume, compare the supplied adoption scenarios, and recommend a decision under uncertainty.

Context:

All inputs are fictional. Over three years, building an internal assistant costs $240,000 upfront, $80,000 per year in fixed operations, and $0.04 per successfully completed request. Buying costs $20,000 upfront, $100,000 per year in fixed fees, and $0.10 per successfully completed request. Annual completed-request volume Q is constant. Both options meet the same quality requirements and deliver the same benefits. Low volume is 200,000 requests per year; high volume is 2,000,000. Ignore taxes, discounting, exit costs, and other costs for this exercise. The client has no reliable volume forecast.

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Under these equal-quality and equal-benefit assumptions, the three-year cost crossover is about 888,889 successfully completed requests per year. Buy is cheaper by $124,000 in the low-volume scenario; build is cheaper by $200,000 in the high-volume scenario...

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