Research Article

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

Table 3

The relationships among variables, objectives and parameters.

Fixed parameterVariable parametersOutcomes
Decision variablesObjective

( 𝑄 , 𝐴 , 𝜋 𝑥 ) , E A C 𝛿 𝜀 𝑝
E A C , 𝑝 𝜀 𝛿
( 𝑄 , 𝐴 , 𝜋 𝑥 ) , E A C 𝛿 𝑝 𝜀
𝐿 = 3 , 𝑝 , 𝛿 = 0 . 5 𝜀
, 𝛿 = 1 . 0 𝜀 0 EVAI 𝑝
, 𝑃 ( 𝑋 > 𝑟 ) = 𝑞 𝐿 EVAI 𝐻