A local boutique hotel purchases boxes of luxury soap using a periodic review system. The average usage for the soap is 725 bars per week with a standard deviation of 150 bars per week it costs $20 to process each order and there is a1 week lead-time for every order, The holding cost for soap is $2 per bar per year. The hotet operates 52 weeks per year. The company places an onter once very twe weeks, ordering up to a target level of 2,475 bars Appronimately what service level is achieved? O RS O 75% O ON O92.5% O o o o

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A local boutique hotel purchases boxes of luxury soap using a periodic review system. The average usage for the soap is 725 bars per week with a standard deviation of 150 bars per week e conta s20 to
process each order and there is at week lead-time for every order, The holding cost for soap is $2 per bar per year. The hotet operates 52 weeks per year. The company places an onter once very twe
weeks, ordering up to a target ievel of 2,475 bars.
Approximately what service level is achieved?
O KSM
O 75%
O ON
O925%
Transcribed Image Text:A local boutique hotel purchases boxes of luxury soap using a periodic review system. The average usage for the soap is 725 bars per week with a standard deviation of 150 bars per week e conta s20 to process each order and there is at week lead-time for every order, The holding cost for soap is $2 per bar per year. The hotet operates 52 weeks per year. The company places an onter once very twe weeks, ordering up to a target ievel of 2,475 bars. Approximately what service level is achieved? O KSM O 75% O ON O925%
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