General Approximate Solutions for some Common Inventory Models

Employing a group of general approximations introduced elsewhere, we derive explicit approximate solutions to the standard newsboy problem, to some (Q, r) models recently developed, and to a periodic review order up to R model. The solutions obtained are general in that no distributional assumptions need to be specified prior to their derivation, and merely knowledge of the first three or four moments (of the relevant random variables) is required. The accuracy achieved is satisfactory, while algebraic simplicity is preserved.