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How much of the above would be considered safety stock

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Reference no: EM131503444

Housekeeping dept. of motel uses 400 washcloths per day. Usage is approximated by a normal distribution that has a mean of 400 and a standard deviation of 9 washcloths per day. A linen supply company delivers towels and washcloths with lead time that is normally distributed with an average of 3 days and a standard deviation of 1 day.

a. What ROP should be used to maintain a stock out risk of 2%.

b. How much of the above would be considered safety stock.

Reference no: EM131503444

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