What is required safety stock and ROP

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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?

Reference no: EM132147599

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