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Chicago's Hard Rock Hotel distributes a mean of 1 , 0 0 0 bath towels per day to guests at the pool and in their
Chicago's Hard Rock Hotel distributes a mean of bath towels per day to guests at the pool and in their rooms. This demand is normally distributed with a standard deviation of
towels per day, based on occupancy. The laundry firm that has the linen contract requires a day lead time. The hotel expects a service level to satisfy high guest
expectations. Refer to the standard normal table for zvalues.
a What is the reorder point? towels round your response to the nearest whole number
b what is the overage cost per program?
c how many programs should be ordered per game?
d what is the stockout risk for this order size?
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