Question

The demand rate for raw material A is normally distributed with an average of 300 pints per day. The standard deviation of daily demand is 15 pints. If the lead time for this material is 4 days, what is the standard deviation of demand during the 4-day lead time

Answer 1

the standard deviation of demand during the 4-day lead time is 30

Step-by-step explanation:

the computation of the standard deviation of demand during the 4-day lead time is given below;

= Sqrt(Lead time) × Std deviation daily demand

= Sqrt(4) × 15

=2 × 15

= 30

Hence, the standard deviation of demand during the 4-day lead time is 30