Answer:
The standard deviation of demand during lead time is 60*2
Step-by-step explanation:
Let us recall the following statements from the given question,
The daily usage is = 60 gallons per day,
Then,
The total number of gallons that is used during the mean time lead can be referred to the demand mean amount:
The Mean demand amount = Daily usage x Mean lead time
Mean demand amount = (60 gallons / day) x 10 days
Mean demand amount = 600 gallons
Since the standard deviation of the lead time is 2 days, the standard deviation of the demand should also be:
The Standard deviation of demand = The Daily usage x Standard deviation of lead time
Standard deviation of demand = (60 gallons / day) x 2 days
Standard deviation of demand = 120 gallons
Or 60 times 2 or 60 x 2
