A Tactical Decision Analysis to Make or Buy in Order to Optimize The Competitive Advantage of House of Mente With The Help of Relevant Cost Analysis

Abstract

This research paper is written to help finding a tactical decision that will increase the competitive advantage of House of Mente as cashew nut snack producer. One of the competitive advantages that needs to be improved is in cost minimization which will be analyzed using relevant cost concept. Data is analyzed using case study based on company data and forecast and is then compared using relevant cost analysis. In order to enhance the result, data is scored using weighted scoring both qualitatively and quantitatively. The result of this research shows that relevant cost can help House of Mente in picking the best tactical decision which is to do self-producing and obtain packaging from supplier outside Surabaya. The implementation of the research result in the company is expected to bring competitive advantage in term of cost minimization as well as production efficiency and effectivity.