Calculate the economic order quantity for plastic pellets

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Reference no: EM132102944

MySchool Notebook Company uses 110,000 pounds of plastic pellets per year in the production of their custom 3-ring school binders. They buy the pellets at a cost of $0.75/lb delivered. They estimate that it costs them $90 to place and put away an order of pellets. They use an inventory holding rate of 10% of the cost of an item. Calculate the economic order quantity for plastic pellets for MySchool Notebook.

Reference no: EM132102944

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