Research Article
Optimal Strategy of Supply Chain considering Interruption Insurance
Table 1
Symbols and related descriptions.
| Notations | Description |
| | Wholesale price of manufacturer | | Retail price | | Production cost of manufacturer | | Retailer’s order quantity | | Random market demand | | Probability density function of demand | | Cumulative distribution function of demand | | Probability of interruption | | Random supply factor | | Penalty cost per unit product | | Premium rate | | Premium sharing coefficient | | Insurance proceeds sharing coefficient | | The expected profit function of retailer | | The expected profit function of manufacturer |
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