ControlQuestion content area

Part $1$

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 $30,000$ 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.

ControlAnnual Freight Costs

Shipping Quantity $($Q$)$

Supplier $5,00010,00015,000$ Price$/$Unit $($p$)$ Annual Holding Cost$/$Unit $($H$)$ Lead Time $($L$)($wks$)$ Annual Administrative Cost

Sharps $$5,000$ $$3,500$ $$3,200$ $$3\mathrm{.}80$ $$0\mathrm{.}763$ $$5,000$

Winkler $$5,400$ $$3,700$ $$3,400$ $$4\mathrm{.}10$ $$0\mathrm{.}826$ $$4,500$

ControlWhich supplier and which shipping quantity will provide the lowest costs for Eight$$ Flags?

Part $2$

Using and a shipping quantity of

$5,000$

$5,000$

$10,000$

$15,000$

is the lowest cost$$ alternative, with annual total costs to Eight Flags of $$$ $($Enter your response as an$$ integer.$)$