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 73,000 units. For the reasons of simplicity assume that the demand is uniform throughout the year. Each compressor unit weighs 10 lbs. KCEW buys the compressors at $150 a piece directly from the manufacturer based in Louisville, KY, in batch sizes that minimize its overall cost. They maintain a safety stock that is 25% of the demand during the lead-time and that the holding cost is 20%. They have received the following transportation proposals from different providers. Assume 365 days per year. Carrier Name Lead Time (days) 12 BNSF Railway C.H. Robinson UPS Supply Chain Solutions Minimum Shipment (cwt) 300+ 50+ 100-200 200-400 400+ Rate ($/cwt) 8.50 14.00 12.00 10.00 6.50 00 OOO 9 9 9 *1 cwt = 100 lbs. What is KCEW's annual holding cost for pipeline stock? $1,600 $73,000 $240,000 $800 $48,000