Bada Bing Bada Boom Candy, Inc. supplies the milk chocolate to candy makers throughout the mid-western states. After tracking your customers' behaviors, you find that 43% of these companies like your chocolate enough that they will wait until you can fill the order--even if it means a delay. Twenty-nine percent need the chocolate for immediate production and will make a one-time buy somewhere else. They realize that your product is superior and will come back. However, 28% of your customers get put off by not having the product and will permanently switch to another supplier.

The added processes and delivery fees to get late deliveries out run around $500 per incident. An average chocolate order is about 200 lbs. You charge $22 per pound. Your profit margin is 13%. The lifetime stream of profits for a customer who permanently defects is estimated to be $254,096.

If Bada Bing Bada Boom Candy, Inc. stocks out of milk chocolate seven times a year, how much can you justify investing to eliminate stockouts through improved logistics, rounded to the nearest dollar?