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Problem:

Chicago's Hard Rock Hotel distributes a mean of 1,200 bath towels per day to guests at the pool and in their rooms. This demand is normally distributed with a standard deviation of 95 towels per day. The laundry firm that has the contract requires a 4-day lead time. the hotel expects a 98% service level to satisfy high guest expectations.

Required:

Question 1) What is the reorder point?

Question 2) What is the Safety stock?

Solve the problem and show all work.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M91168555

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