http://www.manhattangmat.com/forums/post2399.html
it's much easier just to try the answers than to attempt setting up an equation.
the last two choices are WAY too big - (d) you clearly don't need a separate color for each distribution center, and (e) um, what? are you kidding me?
i think (d) and (e) are probably in there for students who don't really understand the question stem; admittedly, this is not the world's easiest question to understand upon first reading.
if you try 4, you'll get 4 (single colors) + 4!/2!2! (pairs of colors), which is 4 + 6 = 10. this is not enough.
at this point you can just realize that the addition of a fifth color will add significantly more than 2 extra possibilities - you get the fifth color itself, as well as its combination with EVERY one of the existing colors - so it's easy to tell that 5 colors will be good enough without actually computing the total.