The purchasing manager of a distillery company is considering three sources of supply for oak barrels. The first supplier offers any quantity of barrels at Rs 150 each. The second supplier offers barrels in lots of 150 or more at Rs 125 per barrel. The third supplier offers barrels in lots of 250 or more at Rs 100 each.

The distillery uses 1,500 barrels a year at constant rate. Carrying costs are 40 per cent, and it costs the purchasing agent Rs 400 to place an order. Calculate the total annual cost for the orders placed to the probable suppliers, and find out the supplier to whom orders should be placed.