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26 December, 04:09

If it takes a supplier four days to deliver an order once it has been placed and the standard deviation of daily demand is 10, which of the following is the standard deviation of usage during lead time? A) 10 B) 20 C) 40 D) 100 E) 400

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  1. 26 December, 04:34
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    B

    Explanation:

    Given Time (T) = 4

    Standard deviation of daily demands (STDdaily) = 10

    Standard deviation of usage = STDdaily * sqrt T

    = 10 * 2

    =20
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