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Newton-Raphson Method to Find the Optimal Ordering

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Abstract

In this paper, we show that the Newton-Raphson method is suitable to locate the optimal ordering time for the inventory model taking account of time value. First, we prove that the sequence constructed from Silver-Meal heuristic will converge. Second, we can take a point near to the limit point as the starting point for the Newton-Raphson method. Finally, from the numerical examples, we know that the Newton-Raphson method is superior to the bisection algorithms that are cited by two recent papers.

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Authors and Affiliations

  1. Department of Traffic Science, Central Police University, Taoyuan, Taiwan

    Time P. Chu

  2. Artillery of Armed Force, Taiwan

    W. H. Tang

Authors
  1. Time P. Chu
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  2. W. H. Tang
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Chu, T.P., Tang, W.H. Newton-Raphson Method to Find the Optimal Ordering. OPSEARCH 36, 343–359 (1999). https://doi.org/10.1007/BF03398588

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