Racers Bicycle Company (RBC) located in Manchester makes a standard racing bicycle for professional cyclists. It produces 500 bicycles per month and supplies them to stores in Jamaica and the Caribbean. The metal frame for the bicycles are produced at the factory, however the tires for the bicycles ( 2 tires per bicycle) are purchased from Max Tracks Limited at a cost of $2000 per tire. The company's inventory carrying cost is estimated to be 15% of cost and the ordering cost is $500 per order. Max Tracks Limited is willing to offer the following discounts: 5% for orders of 500799 tires 7.5% for orders of 800999 tires and 10% for orders of 1000 and above. Required: a) Calculate the Economic Order Quantity. [ 4 marks ] b) Calculate the total cost based on the Economic Order Quantity. [4 marks ] c) Calculate the total cost for each individual alternate order quantities. [ 12 marks ] d) Which order quantity is considered the optimal order quantity and why? [ 2 marks ] e) While the EOQ model can be useful for determining optimal order size, the assumptions on which it rests may not be realistic. List four of these assumptions. [ 4 marks]