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The housekeeping department of a motel uses approximately 200 washcloths per day. The actual number tends to vary with the number of guests on any given night. Usage can be approximated by a normal distribution that has a mean of 200 and a standard deviation of 6 washcloths per day. A linen supply company delivers towels and washcloths with a lead time of four days. If the motel policy is to maintain a stockout risk of 3 percent, what is the minimum number of washcloths that must be on hand at reorder time?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92207938

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