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Average and Standard Deviation of Demand over ...
That means to get the variance of the demand over the LT, we need to sum up the variances of the daily demands. If σ day is the standard deviation of demand per day, and LT days is the lead time expressed in days, then σ2 L = LT days ∗σ 2 day (4) To get the standard deviation of the LT demand (instead of the variance), we have to take the ...
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