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Chicagos Hard Rock Hotel distributes a mean of 1,000 bath towels per day to guests at the pool and in their rooms. This demand is
- Chicagos Hard Rock Hotel distributes a mean of 1,000 bath towels per day to guests at the pool and in their rooms. This demand is normally distributed with a standard deviation of 100 towels per day, based on occupancy. The laundry firm that has the linen contract requires a 2-day lead time. The hotel expects a 98% service level to satisfy high guest expectations.
- What is the ROP? What is the safety stock?
- 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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