What is the significance of the EOQ (Q*) and the ROP?3.

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Understanding the mathematics is only part of the solution. Once you have determined the best plan of action, you need to explain it.In 400-500 words, write a comprehensive summary discussing the inventory plan. In your discussion, address the following:1. What are the benefits of using the EOQ method?2. What is the significance of the EOQ (Q*) and the ROP?3. Why is it important that we determine the standard deviation of demand to calculate Safety Stock?4. How does using the EOQ help save money on inventory costs?5. What are some of the disadvantages of the EOQ method?

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