Daily sales 325 units Std. deviation of daily demand 39 Cost to place an order $30 Freight cost $250 Avg. Inventory (last 12 months) 2,750 units Cost of 1 unit of inventory $125 Cost of Goods Sold $14,828,125 Selling price of 1 unit $250 Avg. replenishment cycle 11 days Average inventory value $343,750 Re-stock fee is $55 Cost of capital = 22.5% Inventory Risk = 1.5% Storage space 5.5% =0.75% Insurance Current number of warehouses = 24 Prime interest rate 3.9% Taxes 1.25% Average annual depreciation 15.5% Std. dev. of replenishment cycle 3 days Forecast error 12.5% Days in a year 365 1. What is the ICC%? 31.3% (to the nearest tenth of a percent) 2. What is the value of R? 11525 (in the EOQ formula) 3. What is the value of V? 4. What is the value of S? (to the nearest cent) What is the value of Q? 5. 6. If the company plans to close 12 of their warehouses over the next 12 months, how much inventory should they expect to have a year from now? 7. How much safety stock should the company hold if it wants to ensure a 98.3% service level