Ruby Owns a Small Café and Uses a Linen Supplier

question 126

Multiple Choice

Ruby owns a small café and uses a linen supplier for her tablecloths. Whenever she needs more tablecloths, she calls the supplier. She uses an average of 12 tablecloths a day with a standard deviation of 3 tablecloths. Lead time is a constant 2 days. If Ruby is willing to accept a 5% stockout risk, what is the reorder point, rounded to the nearest tablecloth? Assume demand is normally distributed.

• A) 28
• B) 31
• C) 34
• D) 42