Public Sector Managerial Decision Making: Buy Or Rent Service Vehicles (Case Study In District Inspectorate Tulang Bawang)

Abstract

In procuring official vehicles of an organization, public sector management has an alternative choice of buying or renting official vehicles. This study aims to assist management in making decisions by analyzing feasible choices between buying or renting official vehicles. Qualitative methods are used in research using primary and secondary data. In this study, we will use a 6 (six) step tactical decision making model as recommended by Hansen & Mowen (2007) and the total cost of ownership (TCO) method. The results of this study indicate that the purchase alternative is relatively more efficient than the rental alternative in the procurement of official vehicles.