Retailer’s Emergency Ordering Policy When Facing an Impending Supply Disruption

Supply disruption is a common phenomenon in business activities. For the case where supply predictable, retailer should make an emergency procurement beforehand to decrease inventory cost. scenario such that happening time of obeys certain probability distribution but ending deterministic, based on minimizing cost and under two possible strategies, we establish optimization model. By considering model solution all cases, closed-form provide optimal policy retailer. Some numerical experiments are made test validity effect involved parameters policy.