DECISION MAKING ANALYSIS TO MAKE OR OUTSOURCE WITH THE HELP OF RELEVANT COST ANALYSIS IN PANCA EXOTIKA

Abstract

This report is the result of relevant cost analysis for the decision making process of make or outsource in Panca Exotika. Panca Exotika is a fashion oriented business that combines batik and leather as its main material and specifically engaged in creative industry. The research was done by using relevant cost analysis to compare the cost, profit and income of each alternative and from both financial and non-financial aspect of the company. The research compares EXOTIK’s fashion line and custom job order line as the consideration. The result of the research helps Panca Exotika to choose which alternative is better for the company between making its own product or keep on outsourcing. Based on the research outcome, outsource decision is better for Panca Exotika.