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Management Studies

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 4. Replenishment lead time is 16 weeks. What is the standard deviation of the demand during lead time? (recall from statistics that standard deviation is equal to the square root of variance and also that there are only rules for variances).

Select one:

a. 2
b. 8
c. 32
d. 64

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M9697484

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