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.

		$90
		$150
		$240
		$21