A boutique cafe in the city operates 365 days a year. The cafe has an annual demand for food products of 60,000 units with an equal daily demand across the year with the standard deviation of the daily demand of 60 units. The supplier of the products charges the cafe the base rate of the products' price of $200 per unit and the base rate for the ordering cost including delivery of $500 per order. The supplier has agreed that it will take four days to fulfill (deliver) the orders for the cafe. The products are kept in the cafe's store, and the annual holding cost per unit is 5% of the product's unit price.

In order to build a long-term relationship, the supplier offers discounted prices for different order quantities. For any order quantity below 2,000 units, the products and the ordering cost will be priced at the base rate. For any order quantity between 2,000 and 4,999 units, the cafe will receive a 5% discount on the base rate of the products' price and a 10% discount on the base rate of the ordering cost. For any order quantity of 5,000 units or more, the cafe will receive a 10% discount on the base rate of the product's price and a 20% discount on the base rate of the ordering cost.

a. If the cafe currently sets the service level at 80%, what will be the amount of the safety stock and the re-order point of the products?

b. If the cafe wants to increase the service level by 10%, suggest two possible options that it can take to achieve the goal without changing the demand. Show the calculations to support your recommendations as well as any other factors that need to be considered in the recommendation.