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Yes, by default the JVM will cache the name resolution. You can change this behaviour by adding the TTL in the managed server startup parameters as follows:
The above parameters mean that the JVM will cache the name resolution for 2 minutes in case of success and for 10 seconds in case of a failure.
For testing purposes, you can reduce the ttl from 120 seconds, but when in production make sure that this value is not too low.
If you follow the above, you don't have to restart anything and you don't have to write any script. The IP address is going to be updated as long as the DNS server is being updated correctly (you can easily test by pinging the host name)