Question: Ruby owns a small cafe and uses a linen supplier for her tablecloths. Whenever she needs more tablecloths, she calls the supplier who answers the

Ruby owns a small cafe and uses a linen supplier for her tablecloths. Whenever she needs more tablecloths, she calls the supplier who answers the phone with a cheery greeting of "Linen supplier." She uses an average of 10 tablecloths a day with a standard deviation of 4 tablecloths. Lead time is a constant 3 days in this dusty town on the plains. If Ruby is willing to accept a 2% stockout risk, what is the reorder point, rounded to the nearest tablecloth? Assume demand is normally distributed.

a) 42

b) 44 c) 38

d) 40

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