What is the target inventory level for the bar soap

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Reference no: EM131788798

At a high end hotel the operations manager needs to keep close tabs on all room service items, including a special pine-scented bar soap. The daily demand for the soap is 303 bars, with a standard deviation of 43 bars. The lead time from the supplier is 3 days. The operations managers check the store room for the on-hand inventory of the bar soap every 3 days and places an order if required (i.e. a fixed period policy is being used to manage inventory).

What is the target inventory level (T) for the bar soap? Assume that a 95% service level is required which corresponds to a z-value of 1.65. Round your answer to 2 decimal places.

Reference no: EM131788798

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