Asked by Brandon Gaylord on Jun 10, 2024

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What is the standard deviation of demand during lead time?

A) 251 phones
B) 2187 phones
C) 4500 phones
D) 4751 phones

Standard Deviation

An indicator of the extent of variability or spread within a dataset, showing how significantly the values deviate from the average.

Lead Time

The amount of time that passes from the start of a process until its completion, often used in supply chain and project management.

  • Compute the standard deviation of demand throughout the lead time across various scenarios.
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Natalia ShalashJun 11, 2024
Final Answer :
A
Explanation :
To calculate the standard deviation of demand during lead time, we use the formula:
SDLT = SD x square root of lead time
Here, SD = 145 (given standard deviation of weekly demand)
Lead time = 3 weeks (given)
SDLT = 145 x square root of 3 = 251
Therefore, the standard deviation of demand during lead time is 251 phones.

As there is no question about making any specific decision or choice, there are no answer choices required for this part of the scenario.