From here I know that there are two ways to update the MMDB, which is used by iplocation.https://www.splunk.com/en_us/blog/tips-and-tricks/updating-the-iplocation-db.html
My MMDB file is updated monthly. My question is: do I need to restart my indexer after the file upgrade? Or is there a better way?
No, that should not be necessary. The only thing that would need to be restarted are real-time searches, if you are running any (hopefully not).
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See "Updating the MMDB file" at https://docs.splunk.com/Documentation/Splunk/8.0.2/SearchReference/Iplocation