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

• Main Authors: Wu Kuo-Jung Jeff, Lei Hsui-Li, Jung Sung-Te, Chu Peter
• Format: Article
• Language: English
• Published: University of Belgrade 2008-01-01
• Series: Yugoslav Journal of Operations Research
• Subjects: economic production quantity; inventory model; present value; Newton method
• Online Access: http://www.doiserbia.nb.rs/img/doi/0354-0243/2008/0354-02430801053W.pdf

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. .