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Save Homework: Assignment 7(Ch19) Score: 0.33 of 1 pt Exercise 19-17 (similar to) 2014 (4 complete) HW Score: 83 33%, 333 of 4 pts Question Help . This Fan World (FW) operates a megastore featuring sports merchandisetuses an EOQ decision model to make inventory decision is now considering inventory decisions for its soccer jerseys product is a highly populariter Athletic Textiles (AT) manufactures the soccer jerseys that FW sells to customers AT has recently installed computer software that enables its customers to conduct one-stop purchasing using state-of-the-art website technology Data for 2018 BHB Click the icon to ww the information) Each jersey costs FW $39 and sells for $82 The $9 carrying cost persey per year comprises the required return on investment of $468 (12% 539 purchase price) plus 54.32 in relevant insurance, handling, and the related costs. The purchasing lead time is 7 days. FW is open 315 days a year FWs ordering cost per purchase order will be 522 using this new technology Required Requirement 1. Calculate the EOQ for the soccer jerseys using the revised ordering cost of $22 per purchase order Comment on the results Begin by selecting the formula used to calculate E0Q (D-Demand in units for one year P ide cost per purchase order, C Carrying cost of one unit in stock, Any order quantly) 500-20P The EOQ for soccer jerseys is 357 jerseys Round your answer to the nearest whole number) Select the choice below that best comments on the results Expected annual demand for soccer jerseys 26.100 Ordering cost per purchase order $145 Carrying cost per your $9 por A The stable increase in ordering cost from $22 to 5145 per purchase order has increased the EOQ e. The size reduction in ordering cost from $545 to 522 pe purchase order has recuced the E0Q The stabile Increase in the reordering point (from 522 60 5145 per purchase order) has increased the E00 D. The stable reduction in the reordering point from $145 to 522 per purchase order) has reduced the EOQ Print Done Requirement 2. Suppose A proposes fo r FW AT will allow FW customers to order directly to AT Website AT would ship directly to these customers. A would pay 512 to FW for every soccer jersey purchased by one of FW's customers Conment qualitatively on how this offer would e ventory management FW Wafadors should FW consider in den wether to accept A proposal Love any unused ce blank easy tracking of adonan high love morale lower administrative costs. werventory holding costs potentially higher sales chok Chock Answers Requirement 2. Suppose AT proposes to assist FW AT will allow FW customers to order directly from the AT website. AT would ship directly to these customers. AT would pay $12 to FW for every soccer jersey purchased by one of FW's customers. Comment qualitatively on how this offer would affect inventory management at FW What factors should FW consider in deciding whether to acompt AT's proposal Leave any unused cells blank ) Pros AT could capture FWs customers difficult to track revenue from FW's customers higher administrative costs higher inventory holding costs Choose from any drop-down it and t repeat customers to the website may not be called as Check Answer All parts showing % Exercise 19-17 (similar to) Question Help Fan World (FW) operates a megastore featuring sports merchandise. It uses an EOQ decision model to make inventory decisions. It is now considering inventory decisions for its soccer jerseys product line. This is a highly popular item Athletic Textiles (AT) manufactures the soccer jerseys that FW sells to its customers. AT has recently installed computer software that enables its customers to conduct one stop purchasing using state-of-the-art website technology. Data for 2018 are: (Click the icon to view the information) Each jersey costs FW 539 and sells for $82 The 59 carrying cost per jersey per year comprises the required return on investment of $468 (12% 539 purchase price) plus $432 in relevant insurance, handling, and theft-related costs. The purchasing lead time is 7 days. FW is open 315 days a year. FW's ordering cost per purchase order will be $22 using this new technology Required ked Scor Requirement 1. Calculate the EOQ for the soccer jerseys using the revised ordering cost of $22 per purchase order. Comment on the results Begin by selecting the formula used to calculate E0Q (D-Demand in units for one year P.Ordering cost per purchase order, C-Carrying cost of one unit in stock, Q Any order quantity) tion E00-200 The EOQ for soccer jerseys is 357 jerseys (Round your answer to the nearest whole number) Select the choice below that best comments on the results O A. The sizable increase in ordering cost (from $22 to $145 per purchase order) has increased the EOQ B. The sizable reduction in ordering cost (from $145 to $22 por purchase order) has reduced the EOQ OC. The sizable Increase in the reordering point (from $22 to 5145 per purchase order) has increased the EOQ Choose from any drop-down list and then click Check Answer TIUNTICVUI. ASSIGICILIUI )

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