In this paper we consider an item with a demand pattern that is stuttering Pojsson in nature (Poisson occurrences of transactions whose sizes are geometrically distributed). Empirically it has been found that a significant number of inventoried items possess a denaand pattern of this type. For a reorder-point (R), order-up-to-Ievel (M) system under continuous review and complete backordering we develop a practical procedure for determining the values of R and M as functions of three given parameters. The three parameters are (i) the average transaction size, (ii) the desired service level, and (iii) a factor that is a conjposite of unit costs, demand rate, and forecast uncertainty. The procedure is compared with a simpler method of ignoring the fact that the transactions can be larger than unit size (this latter method having already been presented in the literature). The comparison is in terms of cost and service errors as functions of the three parameters mentioned above. An important feature of the paper is a careful discussion of the assumptions inherent in the derivation of the procedure.