Marquette Company manufactures and sells kits that homeowners can buy and assemble into office and home furniture. 

Marquette and one of its customers, Goulburn Furnishings, have a dispute about inventory. Goulburn orders 100,000 units annually of one of the desk models sold by Marquette. Because demand fluctuates, Goulburn wants Marquette to keep a six-week inventory for unexpected demand. Marquette operates with a zero-inventory policy as a way of remaining competitive, though it has never been able to completely avoid holding inventory.

After an analysis of costs, you determine that inventory storage costs per kit are $25 at Marquette and $10 at Goulburn.

 

Required

How do you suggest the two companies settle their dispute?