If It Takes a Supplier 2 Days to Deliver an Order

question 59

Multiple Choice

If it takes a supplier 2 days to deliver an order once it has been placed and the daily demand for 3 days has been 120, 124, and 125, which of the following is the standard deviation of usage during lead time?

• A) About 2.16
• B) About 3.06
• C) About 4.66
• D) About 5.34
• E) About 9.30

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Definitions:

Promisee

The party in a contract who is to receive the benefit or performance specified in the agreement.

Promise

A declaration or assurance that one will do something or that a particular thing will happen.

Offer

A proposal by one party to another to enter into a legally binding contract with specific terms.

Offeree

The party to whom the offer is made.