$3.$ Work through the make$-$buy decision framework discussed in class. Make a recommendation on which manufacturing option and$/$or supplier$($s$)$ BMS should use in the future. Be sure to specifically address points raised in the case by the various players involved.

$4.$ Copy your excel analysis for question #$3$ into another sheet in excel $($name it Question $4).$ Complete the analysis with an expected growth rate of $10\%$ per year instead of $15\%$ per year. Would this change your recommendation in question #$3?$

$5.$ Copy your excel analysis for question #$3$ into another sheet in excel $($name it Question $5).$ Complete the analysis with an expected growth rate of $20\%$ per year instead of $15\%$ per year. Would this change your recommendation in question #$3?$

$6.$ BMS has a Continuous Improvement $($CI$)$ team. Mohan and Kumar have not spoken with the CI team yet, however, if the CI team believes that they could reduce waste in the new process to increase capacity to $400,000$ units and also work with suppliers to increase their capacities, would this change your recommendation in question #$3?$

Expected Annual Sales $145,000$

Expected Growth Rate $15\%$

Revenue$/$Unit $$35$

In$-$House Costs Current Process New Process

Variable Cost Per Unit $$18$ $$15$

Annual Fixed Cost $ $275,000$ $ $500,000$

Outsource Costs $($dependent on number of units outsourced$)$

Variable Cost $<150,000150-200,000200-250,000$ Over $250,000$

Supplier $1$ $$25$ $$23$ $$20$ $$17$

Supplier $2$ $$20$ $$20$ $$20$ $$20$

Supplier $3$ $$30$ $$25$ $$20$ $$17$