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 $3 Stock-out cost per unit Average sales volume per week Orders placed per year Lead time 100 12 2 weeks The following table shows estimates of uncertainty experienced by Starfall Bookstore management when facing the various demand possibilities: Demand (2 weeks) 80 Probability of demand 0.03 120 160 200 240 280 300 0.05 0.20 0.37 0.21 0.09 0.05