Chicago hard rock hotel distributes mean of bath towels

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Chicago's Hard Rock Hotel distributes a mean of 900 bath towels to guests at the pool and in their rooms. This demand is normally distributed with a standard deviation of 105 towels per day, based on occupancy. The laundry firm that has the linen contract requires a 2-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).

Reference no: EM132191021

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