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 `150 each. The second supplier offers barrels in lots of 150 or more at `125 per barrel. The third supplier offers barrels in lots of 250 or more at `100 each. The distillery uses 1,500 barrels a year at constant rate. Carrying costs are 40 percent of purchase price, and it costs the purchasing agent `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 the orders should be placed.