You are managing a business that stocks backpacks for extreme adventure use. You have one purchasing agent who receives an annual salary of $45000. She processes 2500 purchase requests for backpacks per year. Average backpack inventory in storage is $75000 and the total cost of running the backpack portion of the warehouse is $15000. You are told that your company purchases 1000 backpacks per year at a cost of $150.00 per backpack.

Using the Economic Order Quantity formula (EOQ), how many backpacks should be ordered at one time?

Answer rating: 100% (QA)

The Economic Order Quantity EOQ formula can be used to determine the opt... View the full answer