When a firm adopts a just-in-time operating environment, 1) new more efficient machinery and equipment must be purchased and installed in the original layout.
2) machinery and equipment are moved into small autonomous production lines called manufacturing cells.
3) new machinery and equipment must be purchased from franchised JIT dealers.
4) employees are trained on different equipment but the plant layout generally stays unchanged.

Mr. beautiful, an organization that sells weight training sets, has an ordering cost of $40 for the bb-1 set. (bb-1 stands for body beautiful number 1.) the carrying cost for bb-1 is $5 per set per year. to meet demand, mr. beautiful orders large quantities of bb-1 seven times a year. the stockout cost for bb-1 is estimated to be $50 per set. over the past several years, mr. beautiful has observed the following demand during the lead time for bb-1: demand during lead time probability40 0.150 0.260 0.270 0.280 0.290 0.1total 1.0the reorder point for bb-1 is 60 sets. what level of safety stock should be maintained for bb-1?