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Abba Ltd. is engaged in the production of baby car seats. It purchases leather from Man-Made Leather Limited. Man-Made Leather takes 10 days to manufacture

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Abba Ltd. is engaged in the production of baby car seats. It purchases leather from Man-Made Leather Limited. Man-Made Leather takes 10 days to manufacture and deliver an order. Abba requires 10,000 yards of raw materials. Its ordering cost is $1,000 per order and its carrying costs are $3 per unit per year. The maximum usage per day is 50 yards of leather. Required: Calculate the following: a) Economic order quantity b) Safety stock c) Reorder level

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