1.b) Boeing Renton Factory located in Washington, provides a particular part for Boeing 737 aircrafts. Annual demand for this part follows a Poisson distribution with parameter = 1.8 units per year. The lead time for this part is 4 months. What is the minimum base stock level that guarantees no stockouts in 98% of the cycles? What are the expected backorder and inventory levels associated to this base stock level? For problem 1.b, show the evolution of inventory for the base stock level you found on a diagram. [25 marks]

1.c) For the problem given in part 1.b, Boeing has now decided to replace their current part provider with seven providers. What are the advantages and disadvantages of this action? Furthermore, they have decided to allocate following percentages of the current demand to each of these facilities; 25%, 9%, 4%, 1%, 16%, 9% and 36%. To maintain the same level of service, how much extra combined safety stock should be hold in these seven facilities compared with the case of the centralised facility?