Annual Holding Cost
1. **Problem Statement:** Calculate the total annual holding cost for an auto parts warehouse that orders 220 units of an air filter with an annual holding cost of 1.50 per unit.
2. **Formula Used:** The total annual holding cost is calculated as:
$$\text{Total Holding Cost} = \text{Order Quantity} \times \text{Holding Cost per Unit}$$
3. **Given Values:**
- Order Quantity $Q = 220$ units
- Holding Cost per Unit $H = 1.50$
4. **Calculation:**
$$\text{Total Holding Cost} = 220 \times 1.50 = 330$$
5. **Interpretation:** The warehouse will pay 330 in total annual holding costs for this air filter.
**Final Answer:**
$$\boxed{330}$$