Maynard Shoe Co. produces and sells an excellent-quality walking show. After production, the shows 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 or the factory. The annual demand for warehouse OR2 is approximately 132,00 pairs of shoes. The ordering cost is $264.00 per order. The annual carrying cost of a pair of shoes is $2.50 per pair.

Although OR2s average weekly demand is 2,750 pairs of shows (132,000/12 months / 4 weeks), demand each week may vary. If a store wants shows and OR 2 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 quantity?