Answer Happy

Eight Flags operates several amusement parks in the Midwest. The company stocks machine oil to service the machinery for the many rides at the parks. Eight Flags needs 40,000 gallons (D) of oil annually; the parks operate 50 weeks a year. Management is unsatisfied with the current supplier of oil and has obtained two bids from other suppliers. The data are contained in the following table. Annual Freight Costs Shipping Quantity (Q) Supplier Sharps (p) Price/Unit Annual Holding Lead Time (L) Annual Administrative Cost/Unit (H) (wks) Cost 4 5,000 10,000 15,000 $3,400 $2,900 $4,000 $3,500 $5,000 $4.00 $0.80 $0.76 $4,500 $5,000 Winkler $5,600 $3.80 Which supplier and which shipping quantity will provide the lowest costs for Eight Flags? Using and a shipping quantity of is the lowest cost alternative, with annual total costs to Eight Flags of $ (Enter your response as an integer.)