If It Takes a Supplier Two Days to Deliver an Order

question 4

Multiple Choice

If it takes a supplier two days to deliver an order once it has been placed and the daily demand for three 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:

Natural Monopolies

Industries where a single firm can supply a product or service to an entire market at a lower cost than what would be possible if there were multiple firms.

Public Interest

The welfare or well-being of the general public, often considered in decision-making processes to ensure policies and actions benefit the majority.

Government

The system or group of people governing an organized community, often a state or nation.

External Benefit

A positive effect or advantage that results from a product or service's production or consumption, which affects third parties not directly involved in the transaction.