Scenario $9\mathrm{.}7$

Cranium, Inc., purchases term papers from an overseas supplier under a continuous review system. The average demand for units a day. It costs $$60$ to process each order and there is a five$-$day lead$-$time. The holding cost for a paper is $$0\mathrm{.}25$ per yea Cranium operates $200$ days per year.

How much safety stock is needed to satisfy a $98\%$ cycle$-$service level?

less than or equal to $100$ units

greater than $100$ units but less than or equal to $110$ units

greater than $110$ units but less than or equal to $120$ units

greater than $120$ units but less than or equal to $130$ units

greater than $130$ units