Housekeeping dept. of motel uses 400 washcloths per day. Usage is approximated by a normal distribution that has a mean of 400 and a standard deviation of 9 washcloths per day. A linen supply company delivers towels and washcloths with lead time that is normally distributed with an average of 3 days and a standard deviation of 1 day.
a. What ROP should be used to maintain a stock out risk of 2%.
b. How much of the above would be considered safety stock.