Question

Companies can use the Economic Order Quantity (EOQ) method to maintain the existing inventory conditions within the company, especially to reduce the existing fixed costs that can arise from the purchase of goods using expedition services. For example, buying goods with Full Container Load (FCL) and Less Container Load (LCL), the LCL fixed cost will be greater because the goods purchased are small but the tariff for sending goods from the supplier to the factory requires no small cost, especially with shipping goods from abroad that will add costs until the terminology is formed in the practice of cost accounting is referred to as 'landing cost'. In maintaining the freshness of UHT milk, companies need to use good quality paper and can withstand water and even the freshness of dairy products is maintained even if stored at room temperature. We often see this when we go to retail stores, right? As an accountant from the UHT Dairy Products Company, you have the task of conducting a survey of the raw materials for packaging – paper from Korea that must be sent to Indonesia. Management also questioned which costs could arise and whether the company should continue to import paper when paper was needed or the need for maintaining paper stock at the factory. If companies must import paper when needed, what should be considered and what costs will occur, and vice versa? FM-BINUS-AA-FPU-78/V2R0 Verified by, ASL Lindawati (D5796) and sent to Department/Program on May 19, 2020 Page 2 of 2 Analyze and use info graphics of the decisions that must be taken by the company along with the impacts, advantage, and disadvantage, also which methods that can be used? EOQ or Just in Time (JIT)

Answer 1

The impact that the new info graphics will have is that it will create a new image in the minds of the people and also it will portray a proactive image of the company.

The advantages of the new graphics is that it helps in highlighting new and more better qualities that are on the offering. Also is helps in bringing up more dynamic packaging for the company and create a entirely good and long lasting brand in the eyes of the people.

The certain disadvantages of the new graphics are that it might not be liked by the people and also it can create a different and bad image in front of the customers.

Now the EOQ or Just In time are two different techniques out of which we shall choose The just In Time method since we are engaged in the business of the perishable items and also keeping a minimum inventory as buffer might result in huge losses over time. We have to pay a premium for JIT but we can save in carrying costs and also the interest costs also we can save on the losses front.