This paper deals with a continuous review (s,S) inventory system in which the demand epochs form a renewal process and the demand magnitudes depend on the inventory at the demand epoch. For the model with zero lead time, the system state probability distribution at arbitrary time and also the limiting distribution are obtained using renewal-theoretic arguments. For the model with random lead time, the techniques of semi-regenerative process is applied to obtain the transient and limiting distribution of the inventory level.
