Shortage cost

Inventory cost

LOTO and CM duration

hedging point z1

hedging point z2

Shortage cost

Inventory cost

LOTO and CM duration

hedging point z1

hedging point z2

Shortage cost

Inventory cost

LOTO and CM duration

hedging point z1

hedging point z2

30

2

10

37.8

32.0

250

2

10

51.2

50.2

250

2

1

6.4

4.2

40

2

10

39.6

34.2

250

6

10

43.8

40.6

250

2

2

14.0

10.2

50

2

10

41.0

36.0

250

10

10

40.6

36.6

250

2

3

26.6

22.0

100

2

10

45.4

41.6

250

14

10

38.4

34.0

250

2

4

36.2

35.6

150

2

10

48.0

45.0

250

18

10

36.8

32.0

250

2

5

41.3

40.4

200

2

10

49.8

47.8

250

22

10

35.6

30.6

250

2

6

45.0

44.2

250

2

10

51.2

50.2

250

26

10

34.6

29.4

250

2

7

47.6

46.8

300

2

10

52.4

52.6

250

30

10

33.8

28.4

250

2

8

49.2

47.2

350

2

10

53.6

54.0

250

34

10

33.0

27.6

250

2

9

50.8

49.8

400

2

10

54.4

55.0

250

38

10

32.4

26.8

250

2

10

51.2

50.2

450

2

10

55.2

56.0

250

42

10

31.8

26.0

250

2

11

51.8

51.6

500

2

10

56.0

57.0

250

46

10

31.4

25.4

250

2

12

52.6

51.8