Eight flags operates several amusement parks in the midwest. the company stocks machine oil to service the machinery for the

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 comma 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 ​5,000 ​10,000 ​15,000 ​price/unit (p) annual holding​ cost/unit (h) lead time​ (l) (wks) annual administrative cost sharps ​$5 comma 600 ​$3 comma 900 ​$3 comma 500 ​$3.80 ​$0.76 3 ​$4 comma 000 winkler ​$5 comma 400 ​$3 comma 800 ​$3 comma 500 ​$3.70 ​$0.74 5 ​$4 comma 500 which supplier and which shipping quantity will provide the lowest costs for eight​ flags?


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