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Throughout the year an auto parts warehouse places severalorders for a high-volume automobile air filter. The demand for thisair filter is very stable (flat) and

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

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

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