Starfall Bookstore orders and sells one of its magazines, Surprise Star magazine. It makes the following estimates for a yearly period: Carrying cost per year $5 per unit Stock-out cost per unit $3 Average sales volume per week 100 Orders placed per year 12 Lead time 2 weeks The following table shows estimates of uncertainty experienced by Starfall Bookstore management when facing the various demand possibilities: Demand (2 weeks) 80 120 160 200 240 280 300 Probability of demand 0.03 0.05 0.20 0.37 0.21 0.09 0.05