Application of Genetic Algorithm and Linear Programming for determination of optimal production volume

Abstract

The problem of determining the optimal production volume is one of the most important problems faced by the management of companies in modern industry. Determining the production volume primarily depends on the customer demands, i.e. demands from the market, but also from some other factors, such as production capacity, supplier capacity and flexibility, raw material costs, etc. In this paper, the way to determine the optimal production volume is defined by using one metaheuristic and one numerical method, namely Genetic Algorithm and Linear Programming, respectively. In addition, a comparative analysis of these methods was performed when it comes to the small-scale problem such as the problem discussed in this paper.