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:

Uncertainty

The state of being unsure about the outcome of an event or the veracity of a fact.

Indifferent

A state of neutrality or lack of preference between two or more choices or outcomes.

Alternatives

Different options or choices available to replace or serve as substitutes for something else.

High Demand

A market condition where the desire and readiness of consumers to purchase a product significantly exceeds the supply, often leading to increased prices.