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: A retailer cannot store a pallet of goods to prepare for the intense peak selling season though they can create a special seasonal display. How many pallets of product should be ordered (assuming that they can schedule the delivery of the pallets appropriately) so that leftover/unsold product from pallet product can be incorporated into the regular display?

Answers: 3, 8, 7, 6