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A normal distribution creates a bell-shaped distribution of the data where 68 percent of the values lie within ONE standard deviation, 95.45 percent lie within TWO standard deviations, and 99.8 percent lie within THREE deviations. Also referred to as Six Sigma for quality control purposes and Gaussian distribution, this distribution curve helps to identify the ideal values within the standard deviation for the goal at hand. (Normal Distribution, n.d.)
Normal Distribution and the information it provides would be beneficial in production to identity the demand for a product or service. Using a forcasted demand quantity can estimate the expected demand. This information is a parametric method, and is usually normally distributed between the mean and standard deviations. By having the information in the normal distribution, the operations or plant manager can gage the demand for the product, which will aide in ordering, staffing, and other operations aspect. Understanding the principles of the normal distribution curve can help to avoid over or under producing of items, over or under staffing, and misidentifying a target price. (Murty, K. Nov. 2006)
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