Shortage cost

Shortage cost

Costs that fall with increases in the level of investment in current assets.
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(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.
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.
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]