Reference no: EM132567391

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.

Question 1: If companies must import paper when needed, what should be considered and what costs will occur, and vice versa?

Question 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)?