If It Takes a Supplier Four Days to Deliver an Order

question 95

Multiple Choice

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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Definitions:

Cost of Failure

The financial, reputational, or operational losses incurred due to the unsuccessful completion of a project or task.

Cost of Conformance

The costs incurred to ensure that a product or service meets the quality standards and requirements, including prevention and testing costs.

Cost of Appraisal

The expenses associated with the activities to measure, evaluate, or audit products or services to ensure conformance with quality standards.

Group Involvement

The participation and collaboration of multiple individuals or teams in the pursuit of a common goal or project.