A small business assembles personal computers from generic components. It purchases its color monitors from a manufacturer in Taiwan; thus, there is a long and uncertain lead time for receiving orders. Lead time is normally distributed, with a mean of 25 days and a standard deviation of 10 days. Daily demand is also normally distributed, with a mean of 2.5 monitors and a standard deviation of 1.2 monitors.

a. Determine the reorder point, given this lead time, and identify the factors that would enter into the decision to change manufacturers. (3 points)