The B & S Novelty and Craft Shop in Bennington, Vermont, sells a variety of quality handmade items to tourists. B & S will sell 300 hand-carved miniature replicas of a Colonial soldier each year, but the demand pattern during the year is uncertain. The replicas sell for $20 each, and B&S uses a 15% annual holding cost rate. Ordering costs are $5 per order, and demand during the lead time follows a normal probability distribution with mean of 15 and standard deviation of 6.