Suppose that customers arrive at a specified store in accordance with a renewal process having interarrival distribution F.

Suppose that the store stocks a single type of item and that each arriving customer desires a random amount of this commodity, with the amounts desired by the different customers being independent random variables having the common distribution G. The store uses the following (s, S) ordering policy: If its inventory level falls below s then it orders enough to bring its inventory up to S. That is, if the inventory after serving a customer is x, then the amount ordered is

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S-x, 0, if x s