My School 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 $60 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 My School Notebook.