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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.

What is the reorder point?_____

What is the Safety stock?________

 

Operation Management, Management Studies

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