What is standard deviation of lead-time in SAP MA-SMOPS - SmartOps?

SAP Term: standard deviation of lead-time

• Component: MA-SMOPS

• Component Name: SmartOps

• Description: A statistical measure of uncertainty regarding the magnitude of expected total lead-time.

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• Key Concepts: 
  Standard deviation of lead-time is a measure of the variability of lead-time in a supply chain. It is calculated by taking the square root of the variance of lead-time. The standard deviation of lead-time is used to measure the uncertainty in the supply chain and to identify potential risks. 
  
  How to use it: 
  In SAP MA-SMOPS SmartOps, the standard deviation of lead-time can be used to identify potential risks in the supply chain. It can be used to determine the amount of inventory that should be held in order to meet customer demand and to identify areas where process improvements can be made. 
  
  Tips & Tricks: 
  When calculating the standard deviation of lead-time, it is important to consider all sources of variability, including supplier performance, customer demand, and production capacity. Additionally, it is important to consider any seasonal variations that may affect lead-time. 
  
  Related Information: 
  The standard deviation of lead-time is closely related to other measures of supply chain performance, such as inventory turnover rate and on-time delivery rate. Additionally, it can be used in conjunction with other measures, such as safety stock levels and service level agreements, to ensure that customer demand is met.