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
​5,000
​10,000
​15,000
​Price/Unit (p)
Annual Holding​ Cost/Unit (H)
Lead Time​ (L) (wks)
Annual Administrative Cost
Sharps
​$5,000
​$3,600
​$3,300
​$3.70
​$0.74
5
$5,000
Winkler
​$5,600
​$4,100
​$3,600
​$3.90
​$0.78
3
​$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 $ .