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?
Fill in the blank(s) with the appropriate word(s).
44.27
Using either of the equivalent Equations 20.8 or 20.12, the answer is the square root of the sum of the variances which is the square root of 10 × (14 squared) or the square root of 1,960, or 44.27.
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Alberto Gonzalez operates a commercial painting business in Tampa, which has a very tight labor market. Much of his work focuses on newly constructed apartments and townhouses.The following data relate to crew no. 5 for a recently concluded period when 85 apartment units were painted: · Three new employees were assigned to crew no. 5. Wages averaged $18.80 per hour for each employee; the crew took 2,550 hours to complete the work.· Based on his knowledge of the operation, articles in trade journals, and conversations with other painters, Gonzalez established the following standards: Typical hourly wage rate of crew personnel: $15Anticipated crew time for each unit: 34 hours· The paint quantity variance was $6,070F.· The operation did not go as smoothly as planned, with customer
complaints and problems being much higher than expected.Required: A. Compute Gonzalez's direct-labor variances.B. Is the direct-labor rate variance consistent with what you might expect in a tight labor market? Explain.C. Analyze the information given and that you calculated, and determine what likely happened that would give rise to customer complaints. What will be an ideal response?