(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 salety stock reduced by this change? (ii). The annual demand for this part is 100,000 units. The annual inventary 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