Question: Chuleta recently expanded its menu at their flagship Orlando location by offering the new Steak Valetta . The new addition requires a special spice

\Chuleta recently expanded its menu at their flagship Orlando location by offering the new Steak Valetta. The new addition requires a special spice rub made by mixing sage, lemon, fennel and garlic into a sazon base, then blending in a secret ingredient. Chuleta uses 147.69oz of the spice rub during a typical week. The rub is purchased from Caliente in San Antonio, TX. Caliente sells 1.5oz spice shaker jars for $3.60 or 10lb re-sealable spice bags for $288 each. [Note that 1oz =0.0625lb]. Based on the storage complexities involved in keeping the spice rub fresh, the holding cost per ounce for one year has been determined to be 24% of the cost price. The cost of ordering is quite low, at $2.88 per order, and safety stock is equal to 2 days of demand. Chuleta is open 6 days a week throughout the year. Ignoring the cost of transportation from San Antonio, what is the total annual cost of Chuletas inventory policy?

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