Question: Please enter only the correct answer Eight Flags operates several amusement parks in the Midwest. The company stocks machine oil to service the machinery for

Please enter only the correct answer Eight Flags

Please enter only the correct answer

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. Annual Freight Costs Shipping Quantity (Q) Supplier Sharps Winkler 5,000 $5,400 $4.800 10,000 $3,900 $3,200 15,000 $3,600 $2,700 Price/Unit Annual Holding Lead Time (L) Annual Administrative (p) Cost/Unit (H) (wks) Cost $4.00 $0.80 6 $4,000 $4.10 $0.82 3 $5,000 Which supplier and which shipping quantity will provide the lowest costs for Eight Flags? Using Sharps and a shipping quantity of 5,000 is the lowest cost alternative, with annual total costs to Eight Flags of $ (Enter your response as an integer.)

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