In this paper we are concerned with the throughput performance of an Automated Storage/Retrieval (AS/R) system under stochastic demand, i.e., the case where storage and retrieval requests arrive randomly. Although AS/R systems have been the subject of extensive research, their performance under stochastic demand remains relatively unexplored. In fact, with random storage and retrieval requests, the primary tool for AS/R system analysis has been simulation. Assuming a particular dwell point strategy for the storage/retrieval machine, in this paper we derive closed-form analytical results to evaluate the performance of an AS/R system under stochastic demand and determine whether or not it meets throughput. Although the results are derived for a given system, they can also be used in the design or evaluation of new/proposed systems.