Scenario 12.2 - Hamsterdam

question 66

Multiple Choice

Scenario 12.2 - Hamsterdam
Marlo Stanfield's operation also uses large quantities of prepaid cell phones,on average 1500 per week with a standard deviation of 145.The lead time for their own brand of prepaid cell phones is three weeks and they have a lot size of 350 phones.To ensure they never run out,they keep a safety stock of 500 phones with Proposition Joe.
-What is the standard deviation of demand during lead time?

• A)251 phones
• B)2187 phones
• C)4500 phones
• D)4751 phones

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Definitions:

Rule Of Reason

A legal principle in antitrust law that evaluates the legality of business practices based on their overall impact on competition, rather than deeming them inherently unlawful.

Sherman Act

A landmark federal statute in U.S. antitrust law passed in 1890 which prohibits monopolistic practices and has been used to regulate competition among enterprises.

Reliable Guidance

Advice or instructions that are dependable and trustworthy, often based on expertise or authoritative sources.

Chicago School Theorists

Chicago School Theorists are economists and legal scholars associated with the University of Chicago, known for their advocacy of free-market principles and minimal government intervention.