Newton–Raphson method to find the optimal ordering

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.