Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Transcribed Image Text:Chicago's Hard Rock Hotel distributes a mean of 1,100 bath towels per day to guests at the pool and in
their rooms. This demand is normally distributed with a standard deviation of 100 towels per day, based on
occupancy. The laundry firm that has the linen contract requires a 3-day lead time. The hotel expects a
96% service level to satisfy high guest expectations. Refer to the standard normal table for z-values.
a) What is the reorder point?
towels (round your response to the nearest whole number).
b) What is the safety stock?
towels (round your response to the nearest whole number).
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