You would like to use the fixed-time-period inventory model to compute the desired order quantity for a company. You know that vendor lead time is 5 days and the number of days between reviews is 7. Which of the following is the standard deviation of demand over the review and lead time if the standard deviation of daily demand is 8?
A. About 39.9
B. About 32.8
C. About 27.7
D. About 35.8
E. About 45.0
Answer: C
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