a) "EOQ models, however complex, are restricted by so many assumptions that they have very limited practical value." Do you agree with this statement? Illustrate your answer ( marks) b) A company uses 8.000 units of a product as raw materials in a year, costing sh. 10 per unit. The administrative cost per purchase is sh. 40, the holding costs are 28% of the average inventory. The company is following an optimal purchase policy and places order according to the Economic Order Quantity (EOQ) model. Recently, it has been offered a quantity discount of one percent ifit purchases the entire requirement only four times a year. Should the company accept the offer of quantity discount of one per cent? If it cannot accept one per cent, what minimum discount should the company demand? (18 marks) [Total: 25 marks]