2. Mabt, a large home appliance retailer, has a store in which the daily demand for a refrigerator is Normally distributed with mean 5 and standard deviation 2. The store orders refrigerator from a manufacturer at the price of $1200 and sells it at $1300. The manufacturer has lead time which is variable with mean of 5 days and standard deviation of 4 days. The order setup cost is $80 and is independent of the order size. The store has an inventory carrying rate of 35 percent for refrigerators. The store manager knows that a shortage of a refrigerator results in an immediate loss of profit of $100, because customers who face shortage are lost. The store manager also knows that the frequent shortage impacts the profit in the long term, but is not able to estimate the long-term cost. Therefore, the manager decides to set its ordering policy to reduce the percent of its customers who face shortage to 5 percent or less. What do you think about the managers choice of 5 percent? Support your answer with numbers.