Abstract
Employing a group of general approximations introduced elsewhere, we derive explicit approximate solutions to the standard newsboy problem, to some (g, 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.
| Original language | English |
|---|---|
| Pages (from-to) | 619-629 |
| Number of pages | 11 |
| Journal | Journal of the Operational Research Society |
| Volume | 37 |
| Issue number | 6 |
| DOIs | |
| State | Published - 1 Jan 1986 |
| Externally published | Yes |
Keywords
- Approximations
- Inventory analysis
- Loss function
- Newsboy problem
- Periodic review model
- Reorder point models
- Sensitivity analysis
ASJC Scopus subject areas
- Management Information Systems
- Strategy and Management
- Management Science and Operations Research
- Marketing