A company that makes doorknobs has found that the demand for its base model is constant at the rate of 1200 units per week. The company operates 50 weeks each year, each week 5 working days. Each model of doorknob is made using the same equipment, and the set up costs are $120. The inventory holding cost is $4 per unit per year.The base model doorknobs are produced at the rate of 4000 per week. Lead time is 2 days. (3 points)

a)Calculate the EPQ (1 point)

b)total costs of the EPQ policy (1 point)

c)Calculate reorder point (0.5 point)

d)describe the policy (0.5 point)