In a safety stock problem where both demand and lead time are variable, demand averages 150 units per day with a daily standard

Question

3 years ago

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In a safety stock problem where both demand and lead time are variable, demand averages 150 units per day with a daily standard

deviation of 16, and lead time averages 5 days with a standard deviation of 1 day. The standard deviation of demand during lead time is approximately:________
a. 15 units
b. 100 units
c. 154 units
d. 500 units
e. 13,125 units

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1 answer:

Lapatulllka [165] · Answer 1 · 2022-12-06T14:44:03+03:00

Answer:

c.154

Explanation:

In a safety stock problem where both demand and lead time are variable, demand averages 150 units per day with a daily standard deviation of 16, and lead time averages 5 days with a standard deviation of 1 day. The standard deviation of demand during lead time is approximately: 154 units