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Clarkson 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. Clarkson 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 126,000 pairs of shoes. The ordering cost is $300 per order. The annual carrying cost of a pair of shoes is $2.10 per pair Read the requirements point should warehouse OR2 reorder shoes? Determine the formula used to calculate the reorder point for reordering shoes in warehouse OR2, then calculate the reorder point Demand per weekx Purchasing lead time (wks)Reorder point 2,625 pairs 2,625 Requirement 3. Although OR2's average weekly demand is 2,625 pairs of shoes (126,000 12 months / 4 weeks), demand each week may vary with the following probability distribution Total demand for 1 week 2,000 pairs 1,750 pairs 2,625 pairs 2,895 pairs 3,125 pairs Probability (sums to 1.00) 0.03 0.10 0.74 0.10 0.03 If a store wants shoes and OR2 has none in stock, OR2 can "rush" them to the store at an additional cost of $2 per pair. How much safety stock should Warehouse OR2 hold? How will this affect the reorder point and reorder quantity? 564 pairs The relevant total stockout and carrying costs are the of shoes is maintained. Therefore, Warehouse OR2 This will increase remain the same. lowest when a safety stock of should hold that number as safety stock 3125 pairs of shoes. The reorder quantity will the reorder point to