Newton method for determining the optimal replenishment policy for EPQ model with present value
DOI:
https://doi.org/10.2298/YJOR0801053WKeywords:
economic production quantity, inventory model, present value, Newton methodAbstract
This paper is a response for the paper of Dohi, Kaio and Osaki, that was published in RAIRO: Operations Research, 26, 1-14 (1992) for an EPQ model with present value. The purpose of this paper is threefold. First, the convex and increasing properties for the first derivative of the objective function are proved. Second, we apply the Newton method to find the optimal cycle time. Third, we provide some numerical examples to demonstrate that the Newton method is more efficient than the bisection method. .References
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