Super Shirts (SS) operates a megastore featuring sports merchandise. It uses an EOQ decision model to make inventory decisions. SS is now considering inventory decisions for its Los Angeles Galaxy jackets product line. This is a highly popular item. Data for 2013 are:

Expected annual demand for Galaxy jackets ......9,000

Ordering cost per purchase order .........$ 250

Carrying cost per year .............$ 8 per jersey

Each jersey costs Super Shirts $ 50 and sells for $ 100. The $ 8 carrying cost per jersey per year comprises the required return on investment of $ 5.00 (10% * $ 50 purchase price) plus $ 3.00 in relevant insurance, handling, and theft- related costs. The purchasing lead time is 6 days. SS is open 365 days a year.

Required

1. Calculate the EOQ.

2. Calculate the number of orders that will be placed each year.

3. Calculate the reorder point.