Method of evaluating investment in inventory policy under inflation

The existence and uniqueness for the optimal reorder quantity for the inventory model under the time-value of money and two inflation rates developed by R.B. Misra have been proved. Moreover, we show that the Newton–Raphson method is suitable for locating the optimal, and we have an analytic procedure to find the initial point for the Newton–Raphson method. Finally, we have a partial answer for the approximated solution.