Consider an inventory system that is continuously reviewed. Each time the inventory position drops below the reorder point, R$,$ an order is placed. The size of the order is the difference between the current inventory position and the order$-$up$-$to$-$level, S$.$ It costs $$75$ to place an order $($of any size$)$ and the inventory holding cost is $$6\mathrm{.}50$ per unit per month. Lead time is $1$ week. It is reasonable to assume that the weekly demand for these goods is uniformly distributed between $60$ and $120$ units. Suppose the store wants the probability of a stockout during the replenishment lead time to be no greater than $0\mathrm{.}05.$