(f) The
shortage cost is n[c.sub.l][[Dt - (1 - p)y].sup.+] = ny[c.sub.l] [[p - [mu]].sup.+].
If one decides to terminate the inspection procedure even if there are uninspected products left, then the remaining unmet demand (RUD) will incur a unit
shortage cost, s ($/product), where [gamma] < s (see Anily and Grosfeld [10]).
(1) Increase in
Shortage cost ([C.sub.s]) per unit, Total
Shortage Cost increases, Total Inventory Cost also increases simultaneously, but Profit decreases.
'We have demonstrated objectively that on-farm costs have increased by more than 1.5p/litre over the past two years and with oil prices remaining high and an ongoing skilled labour
shortage cost pressures remain a serious concern.
How do the related costs (e.g., the LSI's procurement cost and
shortage cost and the FLSP's operation cost) impact the LSI's reserving decision towards logistics service capacity?
(2) C, [C.sub.H], [C.sub.S], [C.sub.D], [C.sub.L] denotes the set up cost for each replenishment, inventory carrying cost per unit time,
shortage cost for backlogged items, deterioration cost per unit, the unit cost of lost sales respectively.
Hence the
shortage cost needs to be completed during this time period.
(j) [C.sub.1] is the
shortage cost per unit per unit time.
In this system, the total cost of inventory management consists of four components: fixed ordering cost, inventory holding cost at internal storage, inventory holding cost at external storage (called over-ordering cost in this paper), and
shortage cost. Item demands and replenishment lead time are stochastic and discrete in nature; therefore, the demands during varying lead time (i.e., the period of shortage risk) are of the same nature.
* Inventory holding cost (for ) and
shortage cost (for ) per unit per unit time at time zero
Then we establish the model and develop the optimal policy for both general convex holding and
shortage cost function and piecewise linear holding and
shortage cost function.
Total
shortage cost in [MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII]