2. The cell in problem 1 is designed with a capacity of 800 units per day. A new product design uses many common parts; the result is a cell scheduled with a one-day lead time and an overall shift to assemble-toorder manufacturing. Customers are happy to receive one-day deliveries.

Overall demand for parts made in the cell is 500 units per day, with a standard deviation of 75 units. The 500 units are typically completed in approximately five working hours. Thereafter, workers in the cell perform equipment maintenance, schedule production, and manage quality.

a. What happens to the service level provided to customers?

b. What happens to safety stock inventory levels?