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Calculating the standard deviation of demand

During replenishment of blue diamonds, it is shown that the average demand per period is 4 and the average lead time is 3 per period. What is the standard deviation of demand during replenishment of blue diamond if the standard deviations of demand per period and lead time are 1.2 and 1.5, respectively.

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Solution Summary

Solution depicts the steps to estimate the standard deviation of demand during replenishment.

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