Question: A stanecutter uses about 1 6 , 5 0 0 pounds of stone each week. The stonecutter estimates their holding cost to be 3 3

A stanecutter uses about 16,500 pounds of stone each week. The stonecutter estimates their holding cost to be 33%% per year. A supplier has offered the stonecutter tvo options. Option 1 is to purchase stone in lots of 35,000 pounds (truckload). The pike per pound for option 1 is $0.61 per pound. Option 2 is to have stone delivered by tail. The cost per pound for option 2 would be 50.39 per pound. Deliveries by rail will include 150,000 pounds of stone. in either case, the supples wil charge the frm a fixed fee of 5325 per dellveryWhat is the total annual (52 week) holding And order cost if option 2?

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