You Would Like to Use the Fixed-Time-Period Inventory Model to Compute

question 62

Multiple Choice

You would like to use the fixed-time-period inventory model to compute the desired order quantity for a company. You know that vendor lead time is 5 days and the number of days between reviews is 7. Which of the following is the standard deviation of demand over the review and lead time if the standard deviation of daily demand is 8?

• A) About 27.7
• B) About 32.8
• C) About 35.8
• D) About 39.9
• E) About 45.0

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Definitions:

Standard Error

The standard deviation of the sampling distribution of a statistic, often used to estimate the accuracy of a sample mean.

Population Standard Deviation

A measure of the dispersion or variability within a full population, indicating how much individual points differ from the population mean.

Sample Size

The number of individual observations or data points collected and included in a sample from a population for analysis.

Effect Size

A quantitative measure of the magnitude of a phenomenon or the strength of the relationship between variables in statistical analysis.