FanShop (FS) 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. Data for 2018 are:

Each jersey costs FS $42 and sells for $85. The $9 carrying cost per jersey per year comprises the required return on investment of $5.04 (=12% of $42 purchaseprice) plus $3.96 in relevantinsurance, handling, andtheft-related costs. The purchasing lead time is 7 days. FS is open 336 days a year.

0 Information Expected annual demand for soccerjereeys 26.400 Ordering cost per purchase order $165 Carrying cost per year $9 per jersey 0 Required 1. Calculate the E00. 2. Calculate the number of orders that will be placed each year. 3. Calculate the reorder point. Print Done