Chicago's Hard Rock Hotel distributes a mean of 800 bath towels per day to guests at...
Chicago's Hard Rock Hotel distributes a mean of 800 bath towels per day to guests at the pool and in their rooms. This demand is normally distributed with a standard deviation of 105 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. Refer to the standard normal tableLOADING... for z-values. a) What is the reorder point? nothing towels (round your response to the nearest whole number).
Homework Answers
reorder point = Daily demand* lead time + z*Standard deviation of demand*sqrt(lead time)
=800*2+normsinv(0.98)*105*sqrt(2) = 1904.966154 = 1905 (Rounded to nearest whole number)
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Chicago's Hard Rock Hotel distributes a mean of 800 bath towels
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