Requirements

Use the EOQ model to determine the optimal number of pairs of shoes per order.

Assume each month consists of approximately $4$ weeks. If it takes $1$ week to receive an order, at what point should warehouse OR$2$ reorder shoes?

Although OR$2\text{'}$s average weekly demand is $3,250$ pairs of shoes months $4$ weeks$),$ demand each week may vary with the following probability distribution:

$\backslash$table$[[$Total demand for $1$ week,$1,500$ pairs,$2,150$ pairs,$3,250$ pairs,$3,520$ pairs,$3,730$ pairs$],[$Probability $($sums to $1\mathrm{.}00),0\mathrm{.}04,0\mathrm{.}20,0\mathrm{.}52,0\mathrm{.}20,0\mathrm{.}04]]$

If a store wants shoes and OR$2$ has none in stock, OR$2$ can "rush" them to the store at an additional cost of $$2$ per pair. How much safety stock should Warehouse OR$2$ hold? How will this affect the reorder point and reorder quantity?Requirements

Use the EOQ model to determine the optimal number of pairs of shoes per order.

Assume each month consists of approximately $4$ weeks. If it takes $1$ week to receive an order, at what point should warehouse OR$2$ reorder shoes?

Although OR$2\text{'}$s average weekly demand is $3,250$ pairs of shoes months $4$ weeks$),$ demand each week may vary with the following probability distribution:

$\backslash$table$[[$Total demand for $1$ week,$1,500$ pairs,$2,150$ pairs,$3,250$ pairs,$3,520$ pairs,$3,730$ pairs$],[$Probability $($sums to $1\mathrm{.}00),0\mathrm{.}04,0\mathrm{.}20,0\mathrm{.}52,0\mathrm{.}20,0\mathrm{.}04]]$

If a store wants shoes and OR$2$ has none in stock, OR$2$ can "rush" them to the store at an additional cost of $$2$ per pair. How much safety stock should Warehouse OR$2$ hold? How will this affect the reorder point and reorder quantity?

Clarkson Shoe Co$.$ produces and sells an excellent$-$quality walking shoe. After production, the shoes are distrstuted 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 OR$2$ is approximately $156,000$ pairs of shoes. The ordering cost is $$300$ per order. The annual carrying cost of a pair of shoes is $$2\mathrm{.}60$ per pair.

Read the requirements.

$3,25U$

$x$

$1$

$=,3\frac{,}{{?}_5}U$ pairs

Requirement $3.$ Although OR$2\text{'}$s average weekly demand is $3,250$ pairs of shoes months $4$ weeks