570 PART 3 MANAGING SUPPLY CHAINS TABLE 14.3 DATA FOR SUPPLIENS TO UPDATE Supplier Price/Unit Annual Holding Cost/Unit Lead Time (Days) Annual Freight Costs Shipping Quantity 10,000 20,000 $10,000 $7,000 $12,000 $9,000 $9,000 $6,500 Annual Administrative Cost $10,000 Abbott $30 $6.00 4 Baker $28 $5.60 7 $12,000 Carpenter $31 $6.20 3 $9,000 2. Eight Flags operates several amusement parks in the Mid- west. The company stocks machine oil to service the machin- ery for the many rides at the parks. Eight Flags needs 30,000 gallons 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 Table 14.4. Which supplier and which shipping quantity will provide the lowest costs for Eight Flags? 570 PART 3 MANAGING SUPPLY CHAINS TABLE 14.3 DATA FOR SUPPLIENS TO UPDATE Supplier Price/Unit Annual Holding Cost/Unit Lead Time (Days) Annual Freight Costs Shipping Quantity 10,000 20,000 $10,000 $7,000 $12,000 $9,000 $9,000 $6,500 Annual Administrative Cost $10,000 Abbott $30 $6.00 4 Baker $28 $5.60 7 $12,000 Carpenter $31 $6.20 3 $9,000 2. Eight Flags operates several amusement parks in the Mid- west. The company stocks machine oil to service the machin- ery for the many rides at the parks. Eight Flags needs 30,000 gallons 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 Table 14.4. Which supplier and which shipping quantity will provide the lowest costs for Eight Flags