PlastiPharm's purchasing department is responsible for purchasing components when the warehouse needs to restock components. When purchasing makes decisions to order components, it takes into account the cost of the purchase as well as the cost of holding the inventory. Using the Economic Order Quantity (EOQ) model, purchasing can determine how much to order and how often to order. How does this help the company? The EOQ model determines the inventory needed to meet customer demand as well as projected future demand. The EOQ model helps minimize the level of inventory 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