Question: The home appliance department of a large department of store is using the re-order point inventory management system to control the replenishment of a

The home appliance department of a large department of store is using

The home appliance department of a large department of store is using the re-order point inventory management system to control the replenishment of a particular model of CD players. The store sells an average of 10 CD players each week. Weekly demand follows a normal distribution with variance 2. Replenishment lead time is 10 weeks. What is the standard deviation of the demand during lead time? Note: Recall from statistics (1) that standard deviation is equal to the square root of variance and (2) that there are only rules for variances but not for standard deviations. Round your answer to two decimal places.

Step by Step Solution

★★★★★

3.53 Rating (153 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

To find the standard deviation of the demand during the lead time follow ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Human Resource Management Questions!

The home appliance department of a large department store is using inventory models to control the replenishment of a particular model of Microwave ovens. The store sells an average of 25 ovens each...

The professional development department of a large CPA firm has prepared the following illustration to familiarize the audit staff with the relationships of sample size to population size and...

The manager of the commercial mortgage department of a large bank has collected data during the past two years concerning the number of commercial mortgages approved per week. The results from these...

One subunit of Track Sports Company had the following financial results last month: Requirements 1. Complete the performance evaluation report for this subunit (round to two decimal places). 2. Based...

Jana Crebs is a contractor for the construction of large office buildings. At the beginning of 2011, three buildings were in progress. The following data describe the status of these buildings at the...

The Plastic Flowerpots Company has two manufacturing departments, molding and packaging. At the beginning of the month, the molding department has 2,000 units in inventory, 70% complete as to...

Refer to the information for Inca Inc. above. Inca Inc. produces soft drinks. Mixing is the first department and its output is measured in gallons. Inca uses the FIFO method. All manufacturing costs...

The marketing segment sales for Caterpillar, Inc., for a recent year follow: In addition, assume the following information: a. Use the sales information and the additional assumed information to...

J. C. Penney Company, Inc. is a large general merchandise retailer in the United States. The following data were obtained from its financial statements for four recent years: A. Compute the asset...

Offix Company manufactures office equipment for retail stores. Carole Windsor, the vice president of marketing, has proposed that Offix introduce two new products: an electric stapler and an electric...

Scroll down to complete all parts of this task. Select from the option list provided the accounting treatment that best matches each transaction below. Each choice may be used once, more than once,...

What is one way a professional running a lineup can make the procedure suggestible to an eyewitness? A) encouraging the witness when they identify the suspect B) remaining silent when witnesses make...

Suppose that 3000 drivers in Wakanda were randomly breath-tested on 21 April 2019 and 116 were above the limit of 0.05 blood-alcohol level. On 15 May 2019, 4000 drivers were tested and 98 were above...

Which of the following is an appropriate guideline for waste disposal? O a. Clean trash cans regularly to remove drips and crumbs that provide food for pests Ob. Do not use plastic liners in trash...

As a manager, Jason spends much of his time coaching his employees and making sure that any required information from upper management reaches them in an understandable format. Jason would best be...

14. In a quality improvement team, the project leader or facilitator would do all of the following EXCEPT provide appropriate resources for problem solutions facilitate with quality improvement and...

Orbital Industries of Canada, Inc., manufactures a variety of materials and equipment for the aerospace industry. A team of R&D engineers in the firm's Winnipeg plant has developed a new material...

A bar of a steel alloy that exhibits the stress-strain behavior shown in Figure 6.22 is subjected to a tensile load; the specimen is 375 mm (14.8 in.) long and has a square cross section 5.5 mm (0.22...

If the federal income tax returns for prior years have not as yet been reviewed by federal tax authorities, would you consider it necessary for the client to disclose this situation in a note to the...

What form of opinion will the auditors normally issue with respect to summary financial statements that the client has developed from the audited financial statements?

Chris York, CPA, is considering the use of probability-proportional-to-size sampling in examining the sales transactions and accounts receivable of Carter Wholesale Company. a. How does the...

6.50. A research study conducts 60 significance tests. Of these, 3 are significant atthe 0.05 level. The authors write a report stressing only the three "significant" results, not mentioning the...

6.42. An experiment with 26 students in an Israeli classroom consisted of giving everyone a lottery ticket, and then later asking if they would be willing to exchange their ticket for another one,...

6.43. Ideally, results of a statistical analysis should not depend greatly on a single observation. To check this, it's a good idea to conduct a sensitivity study: Redo the analysis after deleting an...