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2 0 - 1 7 EOQ, EFFECT OF PARAMETER CHANGES ( continuation of Exercise 2 0 - 1 6 ) . Athletic Textiles ( AT
EOQ, EFFECT OF PARAMETER CHANGES continuation of Exercise Athletic Textiles AT manufactures the soccer jerseys that Fan Base FB sells to its customers. AT has recently installed computer software that enables its customers to conduct onestop purchasing using stateoftheart website technology. FBs ordering cost per purchase order will be $ using this new technology.
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Calculate the EOQ for the soccer jerseys using the revised ordering cost of $ per purchase order. Assume all other data from Exercise are the same. Comment on the result.
Suppose AT proposes to assist FB AT will allow FB customers to order directly from the AT website. AT would ship directly to these customers. AT would pay $ to FB for every soccer jersey purchased by one of FBs customers. Comment qualitatively on how this offer would affect inventory management at FB What factors should FB consider in deciding whether to accept ATs proposal?
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