Scenario $9\mathrm{.}7$

Cranium, Inc., purchases term papers from an overseas supplier under a continuous review system. The average demand f mode is $300$ units a day with a standard deviation of $30$ units a day. It costs $$60$ to process each order and there is a fiveThe holding cost for a paper is $$0\mathrm{.}25$ per year and the company policy is to maintain a $98\%$ service level. Cranium operate year.

Use the information in Scenario $9\mathrm{.}7.$ What is the EOQ for these papers?

greater than $3,000$ units but less than or equal to $4,000$ units

less than or equal to $3,000$ units

greater than $5,000$ units

greater than $4,000$ units but less than or equal to $5,000$ units