Chadwick Shoe Co$.$ produces and sells an excellent$-$quality walking shoe. After production, the shoes are distributed to $20$ warehouses around the country. Each warehouse services approximate

$1$C Question Viewer Iion. Chadwick uses an EOQ model to determine the number of pairs of shoes to order for each warehouse from the factory. Annual demand for Warehouse OR$2$ is approximat

$15$ v$,$uuv parrs ur snoes. The ordering cost is $$276$ per order. The annual carrying cost of a pair of shoes is $$2\mathrm{.}30$ per pair.

Read the requirements.

Requirements

EOQ$=\sqrt[\phantom{2}]{\frac{2DP}{C}}$

Although OR$2\text{'}$s average weekly demand is $3,125$ pairs of shoes

months $4$ weeks$),$ demand each week may vary with the following

probability distribution:

The optimal number of pairs of shoes per order is

pair.

Requirement $2.$ Assume each month consists of approximately $4$ weeks. If it takes $1$ wee

Determine the formula used to calculate the reorder point for reordering shoes in warehou

Requirement $3.$ Although OR$2\text{'}$s average weekly demand is $3,125$ pairs of shoes

If a store wants shoes and OR$2$ has none in stock, OR$2$ can "rush" them to the store at an additional cost of $$3$ per pair. How much safety stock should Warehouse OR $2$ hold? How will this affect

reorder point and reorder quantity?

The relevant total stockout and carrying costs are the

of shoes is maintained. Therefore, Warehouse OR$2$

lowest

when a safety stock of

pairs

should

hold that number as safety stock.

This will

increase

the reorder point to

pairs of shoes. The reorder quantity will

remain the same.ChadwickChadwick Shoe Co$.$ produces and sells an$$ excellent$-$quality walking shoe. After$$ production, the shoes are distributed to $20$ warehouses around the country. Each warehouse services approximately $100$ stores in its region. ChadwickChadwick uses an EOQ model to determine the number of pairs of shoes to order for each warehouse from the factory. Annual demand for Warehouse OR$2$ is approximately $150$ comma $000150,000$ pairs of shoes. The ordering cost is $ $276$$$276$ per order. The annual carrying cost of a pair of shoes is $ $2\mathrm{.}30$$$2\mathrm{.}30$ per pair.