Use the data to answer the question below

Question 1 is in the image.

2. The lead time is variable with an average of 2 days. What should the reorder point be set at to meet the desired service level if the standard deviation of lead time was found to be 0.5 days and the z-score for a service level of 80% is 0.84?

Use the data below to answer the question below. Average daily demand 325 cases per day Standard deviation of daily demand 95 cases per day Average Lead Time 2 days (constant) Inventory holding cost 20% of the item's value per year Purchase Price $50 per case Order Cost $10 per order Stockout Cost $35 per case Desired Service Level 80% Assume the company operates 365 days per year What should the level of safety stock be for this item to meet the desired service level assuming lead time is always 2 days and the Z-score for a service level of 80% is 0.84