Question: 2 1 . Romano Chocolates Boutique orders chocolates from a supplier in Belgium. Demand for the chocolates is relatively constant at 3 0 boxes per

21. Romano Chocolates Boutique orders chocolates from a supplier in Belgium. Demand for the chocolates is relatively constant at 30 boxes per day. The lead time of these chocolates fluctuates but is normally distributed with a mean of 20 days and a standard deviation of 6 days.
a. If the desired service level is 50%, what is the reorder point?
b. What is the reorder point if the desired service level is 94%?
c. If the standard deviation in the lead time can be reduced from 6 days to 3, what reorder point now provides a 97% service level? How does a 97% service level affect the safety stock?

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