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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 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 gallonsD of oil annually; the parks operate 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 PriceUnit p Annual Holding CostUnit H Lead Time Lwks Annual Administrative Cost
Sharps $ $ $ $ $ $
Winkler $ $ $ $ $ $
Which supplier and which shipping quantity will provide the lowest costs for Eight Flags?
Part
Using
Sharps
Winkler
and a shipping quantity of
is the lowest cost alternative, with annual total costs to Eight Flags of $
enter your response here. Enter your response as an integer.
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