Ronal sells 15,000 carvings a year. He has weekly demand of 288 carvings with a weekly standard deviation of 80. The cost for Ronal to place an order to his supplier is $32.00, and the time from ordering to receipt is six weeks. The annual inventory carrying cost is $0.10 per carving.

a. What is the reorder point necessary to provide a 90 percent service level over the lead time?

b. Suppose Ronal reduces the safety stock of this item by 45 percent. What is the new service level?