Optimal Ordering Policy of a Risk-Averse Retailer Subject to Inventory Inaccuracy

<table>Variation of <svg height="11.6375" id="M184" style="vertical-align:-0.1638pt" version="1.1" viewbox="0 0 21.0625 11.6375" width="21.0625" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink">
<g transform="matrix(.017,-0,0,-.017,.062,11.362)"><path d="M600 0h-557v24l268 633l28 8l261 -641v-24zM497 50l-194 489l-196 -489h390z" id="x394"></path></g><g transform="matrix(.017,-0,0,-.017,10.959,11.362)"><path d="M574 449q-23 -58 -38 -79q-16 -4 -79 -4q-27 -100 -46 -219q-14 -87 7 -87t74 36l13 -27q-74 -81 -139 -81q-48 0 -48 62q0 22 8 59l60 258l-154 4q-21 -103 -54.5 -209t-64.5 -151q-38 -23 -83 -23l-7 15q46 36 94 152.5t64 216.5q-81 0 -138 -54l-18 23q22 27 39.5 43
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</svg> with <svg height="12.175" id="M185" style="vertical-align:-3.56265pt" version="1.1" viewbox="0 0 8.5249996 12.175" width="8.5249996" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink">
<g transform="matrix(.017,-0,0,-.017,.062,7.675)"><path d="M471 401q0 -32 -14 -91l-83 -376q-30 -146 -21 -180l-7 -15q-22 0 -47.5 23.5t-25.5 40.5q0 49 53 271l53 224q4 18 6.5 31t3.5 22.5t1 15t-2 9t-4.5 4.5t-6.5 1q-31 0 -100.5 -63.5t-126.5 -145.5q-16 -53 -40 -163q-48 -11 -74 -21l-7 8l82 341q9 36 -4 36
q-8 0 -28.5 -14t-38.5 -32l-17 22q41 43 85 71t66 28q23 0 23 -39q0 -19 -10 -64l-24 -103h2q77 101 201 182q37 24 74 24q31 0 31 -47z" id="x1D702"></path></g>
</svg> for different values of <svg height="7.9499998" id="M186" style="vertical-align:-0.1638pt" version="1.1" viewbox="0 0 7.3000002 7.9499998" width="7.3000002" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink">
<g transform="matrix(.017,-0,0,-.017,.062,7.675)"><path d="M393 379q-9 -16 -28 -29q-15 -10 -23 -2q-19 19 -36 19q-21 0 -52 -38q-57 -72 -82 -126l-40 -197q-23 -3 -75 -18l-7 7q49 196 74 335q7 43 -2 43q-7 0 -30 -14.5t-47 -37.5l-16 23q37 42 82 73t67 31q41 0 15 -113l-11 -50h4q41 71 85 117t77 46q29 0 45 -26
q13 -21 0 -43z" id="x1D45F"></path></g>
</svg>.</table>

Mathematical Problems in Engineering

fig3

Figure 3

Figure 3: Optimal Ordering Policy of a Risk-Averse Retailer Subject to Inventory Inaccuracy 