Question: Guitar Center ( GC ) purchases USB audio interface units from its supplier for a cost of $ 2 8 1 per unit. The lead

Guitar Center (GC) purchases USB audio interface units from its supplier for a cost of $281 per unit. The lead time to receive an order from the supplier is 9 days. Guitar Center incurs a fixed order cost of $1,296 each time it places an order regardless of the number of units ordered. Demand for the audio interface units at the warehouse is constant at 227 units per week. The holding cost per unit per year at the DC is 35% of the per unit purchase cost. Guitar Center currently orders 687 units in each order. Assume Guitar Center operates 7 days per week, 52 weeks per year, and 364 days per year.
Calculate the optimal total annual relevant cost in dollars.

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