ASSIGNMENT 5 (UNIT EXERCISE 10) Q1) What are the differences between EOQ and POQ models? Q2) Draw and explain the graph of EOQ and POQ models. Q3) What is the use of safety stock? Q4) Explain the quantity discount model. Q5) A company makes bicycles. It produces 500 cars a month. It buys the tires for car from a supplier at a cost of $20 per tire. The company's inventory carrying cost is estimated to be 15% of the cost and the order is $50 per order. a) Calculate the EOQ b) What is the number of orders per year? c) Compute the average annual ordering cost. d) Compute the average inventory. e) What does the average annual carrying cost? f) Compute the total cost