The daily usage rate of wheel bearings at a machine shop is normally distributed with a mean of 200 per day and a standard deviation of 15 per day. The lead time fluctuates in a normally distributed way and has a mean of 8 days and a standard deviation of 2 days:

1. If the machine shop wants to provide its customers with a 95% service level, what should the reorder point be?

2. If the lead time standard deviation increases to 4 days, what is the probability that the machine shop will run out of stock?