If It Takes a Supplier 10 Days to Deliver an Order

question 48

Short Answer

If it takes a supplier 10 days to deliver an order once it has been placed and the standard deviation of daily demand is 14, what is the standard deviation of usage during lead time? _________________________________________.

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Definitions:

Aggregate Demand

This term refers to the total amount of goods and services demanded in the economy at a given overall price level and in a given time period.

Laissez Faire

An economic policy or attitude of letting markets operate without government interference or regulation.

Recessions

Periods of temporary economic decline during which trade and industrial activity are reduced, typically recognized by a fall in GDP in two successive quarters.

Depression

A severe and prolonged downturn in economic activity, characterized by significant declines in GDP, high unemployment, reduced consumer spending, and deflation.