Problem 2: Economic Order Quantity Problem (8 points) A plastics company manufactures plastic components for the automobile industry. Since plastic resin pellets are critical to the company's success, the company uses an Economic Order Quantity inventory model to manage the inventory. The company plans to order 2.2 million pounds of plastic resin pellets this year. Pellets cost $0.85 per pound with an annual holding cost of $0.20 per pound. The company estimates the cost to place an order is $350 and the supplier takes 7 days to deliver the shipment. Assume this plastics company works 365 days per year. a /How many pounds of resin pellets should be ordered at one time? (2 points) b)How much does the company spend annually on ordering costs? (2 points) c) How much does the company spend annually on holding costs? (2 points) d) What is the final inventory policy? (Hint: refer to Chapter 11 slide 28) (2 points)