Ask Question
30 October, 00:20

If it takes a supplier 25 days to deliver an order once it has been placed and the standard deviation of daily demand is 20, which of the following is the standard deviation of usage during lead time?

A. 50

B. 100

C. 400

D. 1,000

E. 1,600

+3
Answers (1)
  1. 30 October, 02:00
    0
    option (B) 100

    Explanation:

    Data provided in the question:

    Number of days supplier takes to deliver an order once it has been placed i. e the lead time = 25 days

    Standard deviation of daily demand = 20

    Now,

    Standard deviation of usage during lead time

    = Standard deviation of daily demand * √ (Lead time)

    = 20 * √25

    = 20 * 5

    = 100

    Hence,

    The answer is option (B) 100
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “If it takes a supplier 25 days to deliver an order once it has been placed and the standard deviation of daily demand is 20, which of the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers