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please help solve the numberssafety stock of however many pairs and the reorder point. Clarkson Shoe Co. produces and sells an excellent-quality walking shoe. After
please help solve the numberssafety stock of however many pairs and the reorder point.
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 132,000 pairs of shoes. The ordering cost is $264 per order. The annual carrying cost of a pair of shoes is $2.50 per pair. Read the Determine the formula used to calculate the reorder point for reordering shoes in warehouse OR2, then calculate the reorder point. Requirement 3. Although OR2's average weekly demand is 2,750 pairs of shoes (132,00012 months 4 weeks), demand each week may vary with the following probability distribution: If a store wants shoes and OR2 has none in stock, OR2 can "rush" them to the store at an additional cost of $3 per pair. How much safety stock should Warehouse OR2 hold? How will this affect the reorder point and reorder quantity? remain the sameStep by Step Solution
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