Analysis of optimal production program in metalworing industry

Abstract

This paper investigates the effect of the manner of calculating the product cost price on formatting the impact criteria in production program optimization in metalworking companies by means of genetic algorithm. An algorithm was defined for multi-objective production program optimization using genetic algorithm, with the application of nonlinear function of minimal costs and linear function for maximizing the machinery capacity level. The aim of paper is to investigate the basic hypothesis that the manner of calculating the product cost price in metalworking companies within the framework of the goal to minimize the business operating cost has significant influence on the result obtained by applying genetic algorithms in production program optimization. The results of investigation indicate significant differences in an optimal production program gained by calculating the product cost price via traditional and activity-based costing approach to defining the nonlinear cost function, depending on the volume of production.