S.

No
Items Buy In House
.
1 No. of Moulds 8 4
2 Parts per moulds 10 10
3 Cycle Time 75 70
4 Cycle/shift 384 411
5 Parts/Shift 30720 16440
6 Cartridge/Shift 15360 8220
7 Uptime 90% 95%
8 Cartridge/Shift 13824 7809
9 Annual Capacity 10368000 5856750
10 % Utilization 46 81

Working Details
In-
Buy
House
No. of Shift 3
No. of days 5
No. of weeks 50
Total Cartridge 4687500 4687500
1195312 1120312
Cost (@$2.55)
5 5
Selling Price 4335937 4335937
(@$9.25) 5 5
3140625 3215625
Revenue
0 0

Cartridge Demand
Growth rate 2010 2011 2012 2013 2014 2015
8% 4687500 5062500 5467500 5904900 6377292 6887475
9% 4687500 5109375 5569218 6070447 6616787 7212297
10% 4687500 5156250 5671875 6239062 6862968 7549264

Financial Aspects
In-house Buy
Profit Margins High High
ROI Medium Medium
Continuous Revenue Yes Yes
Financial Risk High High
Overall Good Good
 Supply Chain Aspects
In-house Buy
Impact on Component Supplier Negative Negative
Distribution Network / Sales Force Need to Create Available
Catridge Supplier Support Need to Create Negative
Petrochemical RM Supplier Network Need to Create Available
Supply Chain Risk Not Mentioned Not Mentioned
Overall Not Recommended Moderate (OK)

Managerial / Strategic Aspects

In-house Buy
Core Competency / Focus Not Available Acquired
Will have big Will have big
Technology Change in future impact Impact
Core Problem of Petroleum RM Supply Will be Big issue Not Good
Sunk Cost High Medium
Competitors Reaction High Medium
Managerial Risk Will Increase Will Reduce
Overall No May Be