A fast-moving product in a retail store has average demand of 250 units per week. Recent estimates show high demand fluctuations resulting in having relatively high standard deviation of 100 units per week. Placing an order to the wholesaler will cost $100, and the lead time to receive each order is 4 weeks. The store manager considers an inventory holding cost of $0.65 per unit per year. What reorder point should be considered by the store to achieve a 98 percent service level (service probability)? (Consider 52 weeks for a year) The store manager decides to reduce the safety stock of this product by 200 units. What will be the new service level, after implementing this change?

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