LaRue Shoe Co produces and sells excellent quality walking shoes. After production, the shoes are distributed to 20 warehouses around the country Each warehouse services approximately 100 stores in its region. LaRue uses an EOQ model to determine the number of pairs of shoes to order for each warehouse from the factory Annual demand for Warehouse OR2 is approximately 162,000 pairs of shoes. The ordering cost is $256 per order. The annual carrying cost of a pair of shoes is $2.50 per pair Required Requirement 1. Use the EOQ model to determine the optimal number of pairs of shoes per order Begin by selecting the formula used to calculate EOQ (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.) EOQ= 2DP The optimal number of pairs of shoes per order is 5760 pairs (Round your final answer to the nearest whole number.) Requirement 2. Assume monthly demand is 13,500 shoes. Each month consists of approximately 4 weeks. If it takes 1 week to receive an order, at what point should warehouse OR2 reorder shoes? (Calculate the monthly demand, and then calculate the weekly demand.) Demand per week 3,375 Purchasing lead time (weeks) Reorder point 3,375 pairs Requirement 3. Although OR2's average monthly demand is 13,500 pairs of shoes (162,000/12 months), demand each month may vary from the average by up to 16% To handle the variation in demand, LaRue has decided that OR2 should maintain enough safety stock to cover any demand level How much safety stock should Warehouse OR2 hold? How will this affect the reorder point and reorder quantity? Due to the variation in demand, Warehouse OR2 should hold pairs of shoes in safety stock