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AI agent for supply chain managers

Make or Buy Evaluation Agent

Recommend make or buy on the full cost and be clear how firm the answer is.

DecisionsOperations
See how it worksGet access
Make or Buy Evaluation Agent: what goes in, what the agent does and what you get

What it does

Outsourcing decisions are often based on the supplier's unit price, while the real cost includes tooling, freight, quality and capacity use. This agent collects cost, capacity and lead-time data for making in-house and buying from outside. It compares both on total cost and risk, and tests how sensitive the result is by moving key numbers up and down. If the result flips with a small change, it marks the recommendation as weak and asks for better data. It drafts a recommendation with the reasoning. The planner approves it. Edge case: a buy option that is cheaper only because in-house overhead is spread over fewer units is flagged.

How it works

Follow the arrows from top to bottom. The orange dashed arrow is the loop: when a check fails, the agent goes back and tries again.

Start and resultWhat it doesA check on its own workWaits for your OKGoes back and retries
Yes, continueYes, continueApprovedNoNo 1 STARTS WHEN Make or buy question raised 2 USES A TOOL Collect in-house cost, capacity and lead time 3 USES A TOOL Collect quotes and supplier data 4 DOES Compare total landed cost for each option 5 DOES Test sensitivity by moving volume and cost 10percent 6 CHECKS THE RESULT Does the result stay the same? If not: Mark the recommendation as weak and list thedata to improve. Back to step 4. 7 USES A TOOL Ask for the missing or uncertain data 8 DOES Recalculate with the better data 9 CHECKS THE RESULT Is the result now firm? If not: Report the range and recommend a pilot. Back tostep 4. 10 YOU APPROVE Planner approves the recommendation 11 RESULT Recommendation with sensitivity
Read the steps as a list
  1. Make or buy question raised
  2. Collect in-house cost, capacity and lead time
  3. Collect quotes and supplier data
  4. Compare total landed cost for each option
  5. Test sensitivity by moving volume and cost 10 percent
  6. Does the result stay the same?If not: Mark the recommendation as weak and list the data to improve. Back to step 4.
  7. Ask for the missing or uncertain data
  8. Recalculate with the better data
  9. Is the result now firm?If not: Report the range and recommend a pilot. Back to step 4.
  10. Planner approves the recommendationThe agent waits here for your OK.
  11. Recommendation with sensitivity

How it decides

It compares total landed cost and risk, and only calls a result firm if it holds under reasonable swings.

  • Count freight, tooling, quality cost and inventory
  • Test volume and price changes of 10 percent
  • Mark any result that flips as weak
  • Include capacity freed or used

Make it yours

Every agent is a starting point. You choose these settings for your own situation.

  • Sensitivity range (default 10 percent)
  • Costs included
  • Quality cost estimate
  • Planning horizon

What keeps you in control

It always asks you first

  • Planner approves the recommendation

Hard limits

  • Never decide for the planner
  • Never hide a weak result

It stops when

  • Done: a firm recommendation or a clear range
  • Stop: key data cannot be found and the planner decides

Set it up

We guide you through the set-up, step by step

Members get the full set-up guide for this agent. No technical skills needed: you copy, paste and upload.

10 minto set it up in your AI
5 AIsChatGPT, Claude, Copilot, Gemini, Grok
  • One set of instructions to paste into your AI, with the clicks for ChatGPT, Claude, Microsoft 365 Copilot, Gemini and Grok
  • The agent then walks you through connecting your own data, one source at a time
  • A downloadable copy with the flow chart, the rules and the full guide
Get access to this agent

An example run

What happensFor a bracket, in-house costs $4.10 and a supplier quotes $3.80 plus $0.25 freight. Basic comparison gives $4.05 for buying. A 10 percent volume drop pushes in-house to $4.55. A 10 percent price rise at the supplier gives $4.48. The result flips, so the agent marks it weak and asks for a firm freight quote.

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