Scenario: The Board of Directors of a home appliance manufacturing company directed the CEO and CFO of the company to migrate from LIFO to FIFO. This migration covers inventory valuation of Raw Materials, Work-In-Process and Finished Goods and the movement of materials. To support this migration, the company would like to hire a supply chain consultant and requested a high-level scope from four consultants.
Question: Which one of the following scopes provided by the supply chain consultants are more acceptable for the above scenario?
A) Consultant-A: Commencement from the start of next financial year; review of invoices of raw materials, ABC of work-in-process and ABC of finished goods that are in stock; implementation of gravity flow rakes.
B) Consultant-B: Commencement from the start of next financial year; review of invoices of raw materials, work-in-process and finished goods that were sold in the last financial year; implementation of gravity flow rakes.
C) Consultant-C: Commencement from the start of the next financial year; review of purchase invoices of raw materials and FIFO software.
D) Consultant-D: Immediate commencement with suitable configuration for balance sheet and income statement in the ERP.
Answer: Consultant-A: Commencement from the start of next financial year; review of invoices of raw materials, ABC of work-in-process and ABC of finished goods that are in stock; implementation of gravity flow rakes.