Scenario 13.3 - We Have No Bananas

Multiple Choice

Scenario 13.3 - We Have No Bananas
Weekly demand at the Banana Stand is 200 bananas with a standard deviation of 50.The replenishment lead time is 3 weeks from the plantation in Ecuador.The Banana Stand manager orders 1000 bananas when the inventory drops to 600.Each banana costs $0.50.The holding cost the Banana Stand incurs is 40%.
-Use Scenario 13.3 to answer the question.What is the mean and standard deviation of demand during lead time?

A) DL = 600,σL = 86.60
B) DL = 200,σL = 50
C) DL = 10,400,σL = 252.38
D) DL = 10,400,σL = 50