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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.

Solution Summary

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

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