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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. DA Supplier Sharps Winkler Annual Freight Costs Shipping Quantity (Q) Price/Unit Annual Holding Lead Time (L) Annual Administrative 5,000 10,000 15,000 (p) Cost/Unit (H) (wks) $5,000 $3.300 $2,800 $3.80 $0.76 $4,800 $3.200 $2.900 $3.70 $0.74 Cost $4,500 $4.000 4 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)

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. DA Supplier Sharps Winkler Annual Freight Costs Shipping Quantity (Q) Price/Unit Annual Holding Lead Time (L) Annual Administrative 5,000 10,000 15,000 (p) Cost/Unit (H) (wks) $5,000 $3.300 $2,800 $3.80 $0.76 $4,800 $3.200 $2.900 $3.70 $0.74 Cost $4,500 $4.000 4 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)

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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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. D Annual Freight Costs Shipping Quantity (Q) Cost Supplier Sharps Winkler Price/Unit Annual Holding Lead Time (L) Annual Administrative 5,000 10,000 15,000 (P) Cost/Unit (H) $5,000 $3,300 $2,800 $3.80 $4,800 $3,200 $2,900 $3.70 (wks) 3 $0.76 $4,500 $0.74 4 $4,000 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.)
Transcribed Image Text: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. D Annual Freight Costs Shipping Quantity (Q) Cost Supplier Sharps Winkler Price/Unit Annual Holding Lead Time (L) Annual Administrative 5,000 10,000 15,000 (P) Cost/Unit (H) $5,000 $3,300 $2,800 $3.80 $4,800 $3,200 $2,900 $3.70 (wks) 3 $0.76 $4,500 $0.74 4 $4,000 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.)
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