The pricing scheme for gas is dictated by the supplier, and the buyer (i.e. the case com pure price taker). Before the start of the quarter the company can commit to ordering for each hour of the quarter at a the unit price of c (F for fixed order). Furthermore, start of each month t = 1,2,3 the can commit to ordering the quantity q, for each hou at a the unit price op . Hence the total hourly supply for each hour of month t is q, + The demands across the 724 hours of each month t are assumed to follow the same d and hence the uncertain hourly demands are modelled as the random variables X,, t the ordered quantity exceeds the demand, the excess quantity is sold back at salvage v per unit. In case the demand exceeds the order quantity a share of the shortage X can be covered at a unit cost of of The upper bound of this share is a, (qF + q:) parameter a, E (1, co) is defined by the supplier. Finally, if the demand X, exceeds