Chicago’s Hard Rock Hotel distributes a mean of 1,000 bath towels to guests at the pool. The demand is normally distributed with a standard deviation per day of 100 towels, based on occupancy. The laundry firm which has the linens contract require a 3-day lead time. The hotel expects an 88% service level to satisfy its customers.
1. What is the required safety stock?
2. What is the ROP?