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19 February, 06:10

XYZ company uses "Continuous Review System (Q, ROP) " for an item. Lead-time is currently one week. The average demand during the week is 100 units with a standard deviation of 20 units. If the supplier increases lead-time to 4 weeks, what will be the standard deviation of lead-time demand?

a. 40 80

b. 17.89

c. 44.72

d. 120

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  1. 19 February, 06:19
    0
    The demand value of time lead is

    a) 40

    Step-by-step explanation:

    X Y Z company Uses "Continuous Review System for an item

    Currently demand = 100 units

    standard deviation = 20 units

    lead time increase = 4 weeks

    Apply Z statistic we get the value of standard deviation.
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