Daily sales = 275 units Cost of capital = 25%

Std. deviation of daily demand = 44 Inventory Risk = 1%

Cost to place an order = $26 Storage space = 5%

Freight cost = $225 Insurance = .5%

Avg. Inventory (last 12 months) = 2,500 units Current number of warehouses = 16

Cost of 1 unit of inventory = $100 Prime interest rate = 3.6%

Cost of Goods Sold = $4,000,000 Taxes = 1.5%

Selling price of 1 unit = $200 Average annual depreciation = 15%

Avg. replenishment cycle = 12 days Std. dev. of replenishment cycle = 2 days

Average inventory value = $250,000 Forecast error = 13%

Re-stock fee is $45 Days in a year = 360

what is the value of V?