The microchip shortage that is blocking the production of Cellphones will extend into 2022.

You need to set up an inventory ordering system for a Copper wafer based on the following data (assume a normal distribution).

Copper wafers: A Copper wafer is a material essential for manufacturing microchips, which are found in all kinds of cellphones that enrich our lives. [Hint: Select the appropriate stochastic model]

Average daily demand	40 copper wafers
Standard deviation of demand	4 copper wafers
Average lead time	7 days
Standard deviation of lead time	1 day

A. What safety stock would you recommend if a stockout risk of 10% is considered acceptable?

B. What safety stock would you recommend if a stockout risk of 5% is considered acceptable?

C. What is the reorder point for a service level of 98%?

D. A reorder point of 80 copper wafers has been set. What is the service level?