This article obtains the stationary distribution of the stock level of a continuous review (S,s) Inventory policy with the following characteristics. The demand rate is a constant and unit quantity is demanded whenever there is a demand. When the stock level reduces to an order for (S-s) units is placed which materialises after a random time; the lead time is assumed to have a distribution of PH-type. Further, it is assumed that the demands that arise when the stock level is zero are lost.