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1) Matthew? Liotine's Dream Store sells water beds and assorted supplies. His? best-selling bed has an annual demand of 400 units. Ordering cost is $42 holding cost is ?$55 per unit per year.
?a) To minimize the total? cost, how many units should be ordered each time an order is? placed?
EOQ? = ___ units ?(round your response to the nearest whole? number).
2) Chicago's Hard Rock Hotel distributes a mean of 1,200 bath towels per day to guests at the pool and in their rooms. This demand is normally distributed with a standard deviation of 95 towels per? day, based on occupancy. The laundry firm that has the linen contract requires a 44?-day lead time. The hotel expects a 95?% service level to satisfy high guest expectations.
?a) What is the reorder? point? ___ towels ?(round your response to the nearest whole? number).
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