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:

Compounded Monthly

Compounded monthly refers to the process where interest is calculated and added to the principal sum every month, effectively increasing the total amount at a quicker pace.

Amortization Period

The total time period over which a loan or mortgage is scheduled to be paid off, often through regular payments.

Compounded Quarterly

Interest on an investment or loan is calculated and added to the principal once every three months.

Monthly Payment

A specified amount paid every month, typically as part of a loan repayment plan.