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3. Chicago's Hard Rock Hotel distributes a mean of 1,000 bath towels per day to guests at the pool and in their rooms. This demand is normally distributed with a standard deviation of 100 towels per day, based on occupancy. The laundry firm that has the linen contract requires a 2-day lead time. The manager will set a new order form for the bath tower on the first day of each month. The hotel expects a 98% service level to satisfy high guest expectations. This month, before they place a new order, they still have 150 towers on hand. (a) What is the target inventory level? What is the order size? (b) Suppose the manager is asked to increase the time interval between the two orders to 45 days. If she does so, what will be the new target inventory level? 4. Summarize all the inventory models we learned so far including the basic assumptions, key decisions (whether to decide the order quantity and setup time), and how to combine the models to give the inventory policy.

3. Chicago's Hard Rock Hotel distributes a mean of 1,000 bath towels per day to guests at the pool and in their rooms. This demand is normally distributed with a standard deviation of 100 towels per day, based on occupancy. The laundry firm that has the linen contract requires a 2-day lead time. The manager will set a new order form for the bath tower on the first day of each month. The hotel expects a 98% service level to satisfy high guest expectations. This month, before they place a new order, they still have 150 towers on hand. (a) What is the target inventory level? What is the order size? (b) Suppose the manager is asked to increase the time interval between the two orders to 45 days. If she does so, what will be the new target inventory level? 4. Summarize all the inventory models we learned so far including the basic assumptions, key decisions (whether to decide the order quantity and setup time), and how to combine the models to give the inventory policy.

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3. Chicago's Hard Rock Hotel distributes a mean of 1,000 bath towels per day to guests at the pool and in their rooms. This demand is normally distributed with a standard deviation of 100 towels per day, based on occupancy. The laundry firm that has the linen contract requires a 2-day lead time. The manager will set a new order form for the bath tower on the first day of each month. The hotel expects a 98% service level to satisfy high guest expectations. This month, before they place a new order, they still have 150 towers on hand. (a) What is the target inventory level? What is the order size? (b) Suppose the manager is asked to increase the time interval between the two orders to 45 days. If she does so, what will be the new target inventory level? 4. Summarize all the inventory models we learned so far including the basic assumptions, key decisions (whether to decide the order quantity and setup time), and how to combine the models to give the inventory policy.
Transcribed Image Text:3. Chicago's Hard Rock Hotel distributes a mean of 1,000 bath towels per day to guests at the pool and in their rooms. This demand is normally distributed with a standard deviation of 100 towels per day, based on occupancy. The laundry firm that has the linen contract requires a 2-day lead time. The manager will set a new order form for the bath tower on the first day of each month. The hotel expects a 98% service level to satisfy high guest expectations. This month, before they place a new order, they still have 150 towers on hand. (a) What is the target inventory level? What is the order size? (b) Suppose the manager is asked to increase the time interval between the two orders to 45 days. If she does so, what will be the new target inventory level? 4. Summarize all the inventory models we learned so far including the basic assumptions, key decisions (whether to decide the order quantity and setup time), and how to combine the models to give the inventory policy.
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