KC Engineering Works (KCEW) sells compressors for air conditioning units to several HVAC dealers in the Midwest region. The annual demand for the compressors is 78,000 units. For the sake of simplicity, assume that the demand is uniform throughout the year. Each compressor unit weighs 10 lbs. KCEW buys the compressors at $120 a piece directly from the manufacturer based in Louisville, KY, in batch sizes that minimize its overall cost. They maintain a safety stock that is 20% of the demand during the lead-time and that the holding cost is 25% of the cost per compressor per year. They have received the following transportation proposals from different providers. Assume 365 days per year. (1 cwt = 100 lbs) Carrier Name Lead Minimum Rate Shipment ($/cwt) Time (days) (cwt) BNSF Railway 300+ 9.00 12 C.H. Robinson 50+ 15.00 5 UPS Supply Chain Solutions 100+ 11.00 7 TAZ1 DUCED 1 (8 points) Ignoring the annual purchasing cost of the compressors (which is $12078,000 = $9.360M), what is the total annual (transportation and holding) cost of KCEW if it buys compressors in batch sizes of 2,000 units (i.e. fixed order quantity) and uses UPS Supply Chain Solutions as the transportation provider?