A jewelry firm buys semiprecious stones to make bracelets andrings. The supplier quotes a price of $8.00 per stone forquantities of 600 stones or more, $8.30 per stone for orders of 400to 599 stones, and $10 per stone for lesser quantities. The jewelryfirm operates 175 days per year. Usage rate is 25 stones per day,and ordering costs are $48. a. If carrying costs are $2 per yearfor each stone, find the order quantity that will minimize totalannual cost. (Round your intermediate calculations and final answerto the nearest whole number.) Order quantity stones b. If annualcarrying costs are 30 percent of unit cost, what is the optimalorder size? (Round your intermediate calculations and final answerto the nearest whole number.) Optimal order size stones c. If leadtime is 10 working days, at what point should the company reorder?Reorder quantity stones
