For the Outsourcing Decision Model, suppose that the demand volume is lognormally distributed with a mean of 1,500 and a standard deviation of 500. What is the distribution of the cost difference between manufacturing in-house and purchasing? What decision would you recommend? Define both the cost difference and decision as output cells. Because output cells in Analytic Solver Platform must be numeric, replace the formula in cell B20 with =IF(B19<0,1,0); that is 1 represents manufacutring and 0 represents outsourcing.

Outsourcing Decision Model
Data
Manufactured in-house
Fixed cost	$50,000
Unit variable cost	$125
Purchased from supplier
Unit cost	$175
Model
Demand volume	$1,500
Total manufacturing cost	$237,500
Total purchased cost	$262,500
Cost difference (Manufacture - Purchase)	-$25,000
Best Decision	Manufacture