Let’s assume that Sephora operates the following inventory policy for an item A. The annual demand for the item A is 14,560 units. The daily demand is 40 units with a standard deviation of 5 units. The cost to place order is $32,00, and the time from ordering to receipt is two days. The annual inventory holding cost is $0.40 per unit. Find the reorder point necessary to provide a 98 percent service probability (i. e., probability of a stock out). Also, if the operations manager wants to reduce the safety stock of the product A by 50%, what will the new service probability be?