Suppose the demands in successive weeks for your product are normally distributed with mean 100 and standard

Question:

Suppose the demands in successive weeks for your product are normally distributed with mean 100 and standard deviation 20, and suppose your lead time for receiving a placed order is three weeks. A quantity of interest to managers is the lead-time demand, the total demanded over three weeks. Why does the formula for the standard deviation of lead-time demand include a square root of 3? What assumptions are behind this?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Business Analytics Data Analysis and Decision Making

ISBN: 978-1305947542

6th edition

Authors: S. Christian Albright, Wayne L. Winston

Question Posted: