The Cloth Center sells fabrics to a wide range of industrial and consumer users. One of the products it carries is denim cloth, used in the manufacture of jeans and carrying bags. The supplier for the denim cloth pays all incoming freight. No incoming inspection of the denim is necessary because the supplier has a track record of delivering high-quality merchandise. The purchasing officer of the Cloth Center has collected the following information: (Click the icon to view the information.) Read the requirements. Requirement 1. Calculate the EOQ for denim cloth. Begin by selecting the formula used to calculate EOQ. (D= Demand in units for one year, P = Ordering cost per purchase order, C = Carrying cost of one unit in stock, Q = Any order quantity.) EOQ= 2DP C (Round the denominator to the nearest cent.) The EOQ for denim cloth is 1631.25 yards. Requirement 2. Calculate the number of orders that will be placed each year. Determine the formula used to calculate the number of orders that will be placed each year, then calculate the orders nor year Annual demand 26100 + EOQ 1631.25 Requirement 3. Calculate the reorder point for denim cloth. = Number of orders 16 orders per year Determine the formula used to calculate the reorder point for denim cloth, then calculate the reorder point. Demand per week 593.18 x x Purchasing lead time (wks) 2 Reorder point = 1186.36 yards Data table Annual demand for denim cloth Ordering cost per purchase order Carrying cost per year Safety-stock requirements Cost of denim cloth 26,100 yards $145 10% of purchase costs None $16 per yard The purchasing lead time is 2 weeks. The Cloth Center is open 225 days a year (45 weeks for 5 days a week). - >