Question: Question 5 , ( 2 Marks ) : Ottawa s Fairmont hotel distributes, on average, 1 0 0 0 bath towels per day to their

Question 5,(2 Marks):
Ottawas Fairmont hotel distributes, on average, 1000 bath towels per day to their guests at the pool and within their hotel rooms. This demand is normally distributed with a standard deviation of 100 towels per day, depending on occupancy. The laundry service firm (3rd party contract), promises a 2 day lead time to wash and return/restock the towels when needed. The hotel aims for a 98% service level to its customers to ensure satisfied customers.
a) Determine the ROP for this hotel?
b) What should be the safety stock quantity in order to sustain the service level?

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