i need the solution for the two blanks in requirement 3. the safety stock ____ pairs & the reorder point _____ pairs of shoes.Check the image for requirement 3 as i alreacy have most blanks filled out Maynard Shoe Co. produces and sells an excellent-quality walking shoe. After production, the shoes are distributed to 20 warehouses around the country. Each warehouse servicesapproximately 100 stores in its region. Maynard uses an EOQ model to determine the number of pairs of shoos to order for each warehouse from the factory. Annual demand for warehouseOR2 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 reguirements.O Requirementsprder, C- Carrying cost of one unit in stock, Q- Any order quantity.)1. Use the EOQ model to determine the optimal number of pairs of shoes per order.2. Assume each month consists of approximately 4 weeks. If it takes 1 week to receive an order, at what pointshould warehouse OR2 reorder shoes?3. Athough ORZ's average weekly demand is 2,750 pairs of shoes (132,000 - 12 months + 4 weeks), demandeach week may vary with the following probability distribution:Total demand for 1 week2,000 pairs 1,050 pairs 2,750 pairs 2,070 pairs3,260 pairaint should warehouse OR2 reorder shoes?Probability (sums to 1.00)0.020.100.760.100.02Ser point.Ifa store wants shoes and OR2 has none in stock, OR2 can "rush" them to the store at an additional cost of $4per pair. How much safety stock should Warehouse OR2 hold? How will this affect the reorder point and reorderquantity?PrintDone

At economic order quantity: Ordering cost, and Storing cost is minimum

Maynard 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. Maynard 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 carying cost of a pair of shoes is $2.50 per pair. Read the reuirements O Requirements rder, C- Carying cost of one unit in stock. O- Any order quanty 1. Use the EOQ model to determine the optimal number of pairs of shoes per order. 2. Assume each month consists of approximately 4 weeks. Ifit takes 1 week to receive an order, at what point should warehouse OR2 reorder shoes? 3. Athough ORZS average weekly demand is 2,750 pairs of shoes (132.000 - 12 months +4 weeks), demand each week may vary with the following probability distribution: Total demand for 1 week 2.000 pairs 1,050 pairs 2,750 pairs 2.970 pairs 3,200 pairs nt should warehouse OR2 reorder shoes? Probability (sums to 1.00) 0.02 0.10 0.76 0.10 0.02 er point. Ifa store wants shoes and OR2 has none in stock, OR2 can "rush them to the store at an additional cost of $4 per pair. How much safety stock should Warehouse OR2 hold? How will this affect the reorder point and reorder quantity?

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter11: Strategic Cost Management

Section: Chapter Questions

Problem 21E: This year, Hassell Company will ship 4,000,000 pounds of chocolates to customers with total...