PLG Sports (PLG) sells outdoors products in their retail shops. They found that liquid soap bottles sell all year around, but the demand is uncertain. In average, their daily demand is 130 unitswith daily standard deviation of 40 units. Whenthey order liquid soap bottles from their supplier, Awesome Corp, the leadtime is claimed to be 5 days.

1. Assume there is no uncertainty of delivery leadtime. If PLG wants to maintain a 95% of service level (Z=1.65), then what is the safety stock for PLG? What is the Reordering point?
2. The supply chain disruption now caused the supplier's delivery to have huge variations. It's average leadtime is now 8 days with 4 days in standard deviation in the leadtime. If PLG choose to have a safety stock of 200 unites, what is its new service level in percentage now to its customers? [Hint: you can use Standardize normal distribution and z to figure out, you can also use NORM.DIST() or NORM.S.DIST() in Excel.]