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Chicago s Hard Rock Hotel distributes a mean of 1 , 0 0 0 bath towels to guests at the pool. The demand is normally

Chicagos Hard Rock Hotel distributes a mean of 1,000 bath towels to guests at the pool. The demand is normally distributed with a standard deviation per day of 100 towels, based on occupancy. The laundry firm which has the linens contract require a 2-day lead time. The hotel expects an 98% service level to satisfy its customers. a) What is the ROP? What is the safety stock? b.) Suppose the manager is asked to reduce the above safety stock by 50%. If
she does so, what will be the new service level?

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