In a Safety Stock Problem Where Both Demand and Lead

question 131

Multiple Choice

In a safety stock problem where both demand and lead time are variable, demand averages 150 units per day with a daily standard deviation of 16, and lead time averages 5 days with a standard deviation of 1 day. What is the standard deviation of demand during lead time?

• A) 15 units
• B) 100 units
• C) 154 units
• D) 500 units
• E) 13,125 units