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 twobids from other suppliers. The data are contained in the following table.DiAnnual Freight CostsShipping Quantity (Q)(wks)CostSupplierSharpsWinkler5,000$5,200$5,400Price/Unit Annual Holding Lead Time (L) Annual Administrative10,000 15,000 (P) Cost/Unit (H)$3,600 $3,200 $3.70$3.700$3,400$0.745$4,000$5,000$3.90$0.786Which supplier and which shipping quantity will provide the lowest costs for Eight Flags?Usingand a shipping quantity ofis the lowest cost alternative, with annual total costs to Eight Flags of $. (Enter your response as an integer.)

Annual Demand (D) = 30,000 gallonsNumber of weeks = 50 weeksWeekly Demand (d) = 30,000/50 = 600…

Answered: Using and a shipping quantity of is the…

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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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)