What is your standard deviation of demand during lead time if your average lead time = 5 days, standard deviation of demand = 4, average demand is 12, and standard deviation of lead time is 1.2 days
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What is your standard deviation of demand during lead time if your average lead time = 5 days, standard deviation of demand = 4, average demand is 12, and standard deviation of lead time is 1.2 day???
Answer: 4.47
The computation of the standard deviation of lead time is shown below:
= √lead time × standard deviation of demand
= √ 5 days × 4
= √20
= 4.47
We simply applied the above formula to determine the standard deviation of demand during lead time
Hence, all the other items would be ignored
Explanation:
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