Reference no: EM133051877

Question - Soccering is a sports company specialized in soccer boots. The demand for Soccering boots is normally distributed with an average of 14400 pairs per year and an annual standard deviation of 2400. Soccering imports all its boots from China and ships them in full-containers to their DC in Los Angeles, California. Soccering takes ownership of the boots when they arrive to the port in China.

Soccering works with a single ocean carrier, Smooth Ship, that has a lead time of 4 weeks. Smooth Ship charges $1000 per container shipped, from port to port. Every container carries 1200 pairs of boots. The cost of placing an order is $500, independently of the number of containers shipped.

The cost per pair of boots is $15, and the selling price is $100. Assume a CSL of 95%, a holding charge of 20% per year, and 50 weeks per year for planning purposes. Soccering includes the cost of transportation in the cost of their soccer boots when calculating inventory and purchasing costs.

Note: Make your calculations using containers. When computing the EOQ, make sure to roundup the number of containers to order (e.g. 8.12 rounds to 9).

What is Soccering's EOQ? Calculate the EOQ in number of containers. ROUND UP your answer.

What is Soccering's annual expected purchasing cost? Round your answer to the nearest integer.

What is Soccering's annual expected ordering cost? Round your answer to the nearest integer.

What is Soccering's annual expected cost of pipeline inventory? Round your answer to the nearest integer.

What is Soccering's annual expected cost of safety stock? Round your answer to the nearest integer.