(i) Demand for a product is relatively constant at five units per day. Lead time for this product is normally distributed with a mean of ten days and a standard deviation of three days. [4 Marks] a. What reorder point provides a 50 percent service level? b. What reorder point provides a 90 percent service level? c. If the lead time standard deviation can be reduced from 3 days to 1 , what reorder point now provides 90 percent service? How much is safety stock reduced by this change? (ii) . The annual demand for this part is 100,000 units. The annual inventory carrying cost is $5 per unit and the cost of preparing an order and making production setup for the order is $750. The company operates 250 days per year. The machine used to manufacture this part has a production rate of 2000 units per day. [4 Marks] a. Calculate the optimum lot size. b. How many lots are produced in a year? c. What is the average inventory for Audio Max? d. What is the annual cost of preparing the orders and making the setups