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 had a special order of this product for 200 units and they needed it within 5 days and could not delay for 3 weeks, how much more would this cost them than if they could wait?

    $15

    The costs are the same either way

    $30

    There is not enough information to determine this.

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