Question: Answer the following questions below based on the following data: Cost to ship a box of product - $4.00 Cost to ship a pallet of
Answer the following questions below based on the following data:
Cost to ship a box of product - $4.00
Cost to ship a pallet of product - $25.00
Number of boxes on a pallet 10
Number of product units in a box 10
Deseasonalized Demand for product 12 units per week
Peak Demand 225 units/week for 3 weeks
Retailer shelf capacity 20 units
Time to ship a box from existing warehouse or distribution center inventory to the store 3 days
Time to make product and ship a pallet from the manufacturer to the warehouse, distribution center, or store 21 days
Question: If a store could replenish the regular display from a pallet in the back of the store, how much could they save in shipping costs by doing this during the 49 non-peak weeks rather than ordering boxes shipped to the store for all weeks except for peak season.
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