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Throughout the year an auto parts warehouse places several orders for a high-volume automobile air filter. The demand for this air filter is very stable (flat) and the lead time from the supplier is very reliable (no variation), consequently the warehouse holds virtually no safety stock for this item. When placing orders for this air filter the warehouse uses an order quantity of 180 units and pays an annual holding cost of $1.90 per unit per year.

How much will the warehouse pay in total annual holding costs for this air filter? (Display your answer to the nearest whole number.)

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92435531

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