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Home Page Test Answers Lead time is exactly 20 days long. Daily demand is normally distributed with a mean of 10 gallons per day and a standard deviation of 2 gallons. What is the standard deviation of demand during lead time? - Q/A (Question and Answer)

Lead time is exactly 20 days long.

Question
Lead time is exactly 20 days long. Daily demand is normally distributed with a mean of 10 gallons per day and a standard deviation of 2 gallons. What is the standard deviation of demand during lead time? – Q/A (Question and Answer)
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Gabriela Compton

Test Answer

Answer:

2 times the square root of 20 ; The standard deviation of demand during lead time equals the daily standard deviation of demand times the square root of the lead time.

Recource ch.13 OP MGMT

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