Research Article

Optimal Inventory Policy Involving Ordering Cost Reduction, Back-Order Discounts, and Variable Lead Time Demand by Minimax Criterion

Table 1

Lead time data.

Lead time componentNormal durationMinimum durationUnit crashing cost
𝑐 𝑖 𝑝 = 0 , 0 . 2 , 0 . 4 , 0 . 6 , 0 . 8 , 1 (days) 𝑞 = 0 . 2 (days) 𝛿 = 0 , 0 . 5 , 1 ($/day)

12060.4
22061.2
31695.0