Read the following case study for Littefleid Labs. After reading the information answer the following questions based on the information on the information provided. Note: Partial credit will be available in order to provide credit for demonstration of subject knowledge. Littlefield Laboratories, LLC (LL) provides an integrated genetic test called MaterniT 21 PLUS for expected parents in Northern California. LL charges its customers a premium price of $1,900 per test and promises to return the result within 24 hours after receiving the order; otherwise a rebate will be provided. LL runs 247 and customer orders for the test come in to the lab with blood samples on a continuous basis. Demand for the test is relatively stable at an average of 3,000 tests per month, with an estimated standard deviation of 100 tests for the weekly demand. Each test requires an advanced testing kit that can be purchased from a sole supplier at a wholesale price of $600 each. LL can purchase the testing kits from the supplier in a batch. The supplier charges a fixed setup cost (including shipping) of $6,000 for each batch LL orders, regardless of the size of the batch. It will take exactly 7 days for the supplier to deliver the batch to LL after LL places the order. If LL runs out of inventory for less than a week, the backlog cost is estimated to be $156 per unit. As soon as the batch is delivered, LL pays the supplier out of is operational cash account, which generates interest for LL on a compound annual growth rate (CAGR) of 8%. Test kits are very small parts that do not require any physical resources (e.g., extra space or climate control) to hold. Evaluate Potential Solution - LL plans to set its reorder point at 700 units, which equals the average weekly demand LL faces. Check All That Apply If LL keeps 700 units on hand during the 7-day supplier lead time, LL has a 50% chance of running out of inventory before the supplier delivers the ordered batch of testing kits. If LL keeps 700 units on hand during the 7-day supplier lead time, LL. has a 50% chance of having leftover inventory when supplier delivers the ordered batch of testing kits. 700 is the optimal reorder point for LL to set. LL should set a reorder point higher than 700 in order to have a positive safety stock buffer. LL should set a reorder point lower than 700 in order to have a negative safety stock buffer