Question 3. (2 points) Suppose that the estimate of lead time demand (LTD) is as follows: (a) If reorder point is set at 3 (i.e., an order is placed when inventory falls to 3 ), what is the service level (in percentage)? (b) If reorder point is set at 3 , what is the safety stock? Question 4. (4 points) Suppose that lead time demand (LTD) is estimated to be a Normally distributed variable with mean =5,000 units and standard deviation =1,000 units. (a) What should be the reorder point if the desired service level is 86% ? (1) (b) How many standard deviations above the mean of LTD should the reorder point be if the desired service level is 99.01% ? Round up or down to two significant figures after the decimal point. 1) (c) What service level (in percentage) is indicated if the safety stock is 840 units? Choose the nearest integer. (d) What service level (in percentage) is indicated if the reorder point is 6,640 ? Choose the nearest integer. (1)