13.36. IM Systems assembles microcomputers from generic components. It purchases its color monitors from a manufacturer in Taiwan; thus, there is a long lead time of 25 days. Daily demand is normally distributed with a mean of 3.5 monitors and a standard deviation of 1.2 monitors.

a. What is the safety stock and reorder point corresponding to a 90% service level?

b. IM Systems is considering purchasing monitors from a U.S. manufacturer that would guarantee a lead time of eight days, instead of from the Taiwanese company. Determine the new reorder point given this lead time and identify the factors that would enter into the decision to change manufacturers.

z=1.29