Abstract:
This master project is an alternate consideration in battery acid process improvement
by outsourcing. In case study, the consist of break-even point analysis for make or buy
decision and study production order quantity, economic order quantity in order to
production and minimum costing.
The finding showed that acid production of break-even point by 2 outsourcing is
7,778 and 6,189 liter. The quantity requirement acid average per day is 11,740 liter. So
the cost of producing acid by is myself lower than the cost of buying from an outsource.
Therefore, at present, the company should be producing acid by itself next and sensitivity
analysis that variable cost increase 20 % , cost of acid battery from outsource increase 5 %
as a result, the break-even point is 13,041 liters more than the average requirement of
acid per day, reveals that ordering acid battery from outsource is better than making your
own.