Newton method for determining the optimal replenishment policy for EPQ model with present value

Authors

  • Kuo-Jung Jeff Wu Department of Logistics Management, National Defense University, Taiwan
  • Hsui-Li Lei Department of Communication Engineering, Oriental Institute of Technology, Taiwan
  • Sung-Te Jung Department of Communication Engineering, Oriental Institute of Technology, Taiwan
  • Peter Chu Department of Traffic Science, Central Police University, Taiwan

DOI:

https://doi.org/10.2298/YJOR0801053W

Keywords:

economic production quantity, inventory model, present value, Newton method

Abstract

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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Published

2008-03-01

Issue

Vol. 18 No. 1 (2008)

Section

Research Articles

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