Maynard 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. Maynard 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 132.000 pairs of shoes. The ordering cost is $264 per order. The annual carrying cost of a pair of shoes is $2.50 por pair. Read the requirements Requirements X order, C = Carrying cost of one unit in stock, Q = Any order quantity.) 1. Use the EOQ model to determine the optimal number of pairs of shoes per order. 2. Assume each month consists of approximately 4 weeks. If it takes 1 week to receive an order, at what point should warehouse OR2 reorder shoes? 3. Although OR2's average weekly demand is 2,750 pairs of shoes (132,000 - 12 months . 4 weeks), demand each week may vary with the following probability distribution: Total demand for 1 work 2,000 pairs 1,950 pairs 2.750 pairs 2,970 pairs 3,260 pairs int should warehouse OR2 reorder shoes? Probability (sums to 1.00) 0.02 0.10 0.76 0.10 0.02 por point. if a store wants shoes and OR2 has none in stock, OR2 can "rush" them to the store at an additional cost of $4 per pair. How much safety stock should Warehouse OR2 hold? How will this affect the reorder point and reorder quantity? Print Done Requirement 3. Although OR2's average weekly demand is 2,750 pairs of shoes (132,000 + 12 months + 4 weeks), demand each week may vary with the following probability distributions Total demand for 1 week 2.000 pairs 1.950 pairs 2,750 pairs 2,970 pairs 3.260 pairs Probability (sums to 1.00) 0.02 0.10 0.76 0.10 0.02 If a store wants shoes and OR2 has none in stock, OR2 can "rush" them to the store at an additional cost of $4 per pair. How much safety stock should Warehouse OR2 hold? How will this affect the reorder point and reorder quantity? The relevant total stockout and carrying costs are the lowest when a safety stock of pairs of shoes is maintained. Therefore, Warehouse OR2 should hold that number as safety stock. This wil increase the reorder point to pairs of shoes. The reorder quantity will remain the same