Ottawas Fairmont Chteau Laurier hotel distributes a mean of 1000 bath towels per day to guests at
Question:
Ottawa’s Fairmont Château Laurier hotel distributes a mean of 1000 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 two day lead time. The hotel expects a 98% service level to satisfy high guest expectations.
a) What is the ROP?
b) What is the safety stock?
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Only demand is variable in this problem so ...View the full answer
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Related Book For 
Operations Management Sustainability and Supply Chain Management
ISBN: 978-0133764345
2nd Canadian edition
Authors: Jay Heizer, Barry Render, Paul Griffin
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