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a jewelry firms buys semiprecious stones to make bracelets and rings. the supplier quotes a price of $8.90 per stone for quantities of 600 stones or more, $9.60 per stone for orders of 400 to 599, and $10 per stone for lesser quantities. The jewelry firm operates 192 days per year. usage rate is 25 stones per day,and ordering costs are $48.
a. If carrying costs are $2 per year for each stone, find the order quantity that will minimize total annual cost. (Round your intermediate calculations and final answer to the nearest whole number?
Order quantity................stones
b. if the annual carrying costs are 21 percent of unit cist, what is the optimal order size? (Round your intermediate calculations and final answer to the nearest whole number)
optimal order size.............stones
c. if lead time is to working days,at what point should the company reorder?
reorder quantity.............stones
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