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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