Research Article

Optimal Emergency Ordering Policy for Inventory with a Random-Ending-Time Supply Disruption

Table 1

Notations.

SymbolDescription

Fixed order cost
Demand rate
Holding cost per unit time per unit
Selling price
Normal purchase price
Remaining inventory when supply disruption occurs
The time when remaining inventory is depleted
Ending time of supply interruption
The deadline of ending time of supply interruption
The emergency ordering time under one-emergency-order policy
The emergency ordering quantity under one-emergency-order policy
The first emergency ordering time under two-emergency-order policy
The second emergency ordering time
The first emergency ordering quantity under two-emergency-order policy
The second emergency ordering quantity under two-emergency-order policy
Indicates the optimal value