Question 7 (2 points) If daily demand is constant at 14 units per day, and lead time averages 10 days with a standard deviation of 3.0 days, 97.5% percent service requires the the organization reorder when the inventory drops to what level? Round your answer to the nearest whole item. Suppose that papers for a newspaper stand cost $0.40 and sell for $0.65. They currently have no salvage value. If the stand owner is able to find an outlet that would provide a salvage value of $0.10, what would be the increase in optimal service level? Express your answer as a decimal rounded to two (2) decimal places e.g. 12.4%-> 0.12. Hint: compute the optimal service level assuming no salvage value, do so a second time with a salvage value of $0.10, and then subtract the first service level from the second