Chicago hard rock hotel distributes a mean of 1000 bath, Accounting Basics

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Chicago hard rock hotel distributes a mean of 1000 bath

Question: Chicago Hard Rock Hotel distributes a mean of 1000 bath towels per day to guests. The demand is normally distributed with a std. deviation of 100 towels per day. The laundry firm that has the linen contract requires a 2-day lead lime. The hotel expects a 98% service level.

a. What is the ROP?

b. What is the safety stock?

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Accounting Basics: Chicago hard rock hotel distributes a mean of 1000 bath

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Accounting Basics: Chicago hard rock hotel distributes a mean of 1000 bath

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