13 PlastiPharm's purchasing department is responsible for purchasing components when the warchouse needs to restock components. When purchasing makes decisions to order components, it takes into account the cont of the purchase as well as the coat of holding the irrentory. Using the Economk Order Quantity (EOG) model, purchasing can determine how much to order and how often to oeder. How does this help the company?The LOQ model determines the inventory needed to meet customer demand as well as projected future demand.The EOQ model helps minimize the level of irrentory as well as the purchasing costs, and cash savings can be used for some other business purpose.The EOQ model allows the company to minimize the setup costs for each new customer order and save money.Using the EOQ model helps maximize the number of supplies ordered so that customers demands are always met.