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Requirement 4. What is the total relevant ordering and carrying costs with safety stock and without safety stock? final answers to the nearest whole dollar.)

image text in transcribedimage text in transcribedimage text in transcribed Requirement 4. What is the total relevant ordering and carrying costs with safety stock and without safety stock? final answers to the nearest whole dollar.) Safety stock: With Without x )= Ordering cost x x final answers to the nearest whole dollar.) Safetystock:WithWithout[(1[([(1/2)+12)+12)+12]x]x]=Carryingcost== ordering cost is $256 per order. The annual carrying cost of a pair of shoes is $2.10 per pair. Requirement 1. Use the EOQ model to determine the optimal number of pairs of shoes per order. The optimal number of pairs of shoes per order is pairs. (Round your final answer to the nearest whole number.) monthly demand, and then calculate the weekly demand.) Due to the variation in demand, Warehouse OR2 should hold pairs of shoes in safety stock. This will the reorder point to 5180 pairs of shoes. The reorder quantity will e EOQ model to determine the optimal number of pairs of shoes per order. ormula used to calculate EOC Required pairs of shoes per order is 64 e monthly demand is 14,000 nen calculate the weekly dem gh OR2's average monthly de hould maintain enough safety lemand, Warehouse OR2 sho s the total relevant ordering a used to calculate total relevan arest whole dollar.) 1.Use the EOQ model to determine the optimal number of pairs of shoes per order. 2.Assume monthly demand is 14,000 shoes and 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 monthly demand is 14,000 pairs of shoes (168,000/12 months), demand each month may vary from the average by up to 12%. To handle the variation in demand, Davenport 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? 4.What is the total relevant ordering and carrying costs with safety stock and without safety stock? n stock, Q= Any order quanti ht should warehouse OR2 rec up to 12%. To handle the va fect the reorder point and reo pes. The reorder quantity will not used, leave the cell blank

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