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: 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?
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