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Business, 06.05.2020 03:11 AdoNice

Chicago's Hard Rock Hotel distributes a mean of 977 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 3-day lead time. The hotel expects a 97% service level to satisfy high guest expectations.

a) What is the reorder point?
b) What is the safety stock?

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