Co-Optimization of Production Capacity and Advertising
Sherstennykov Y. V.

Sherstennykov, Yuriy V. (2019) “Co-Optimization of Production Capacity and Advertising.” The Problems of Economy 2:194–199.
https://doi.org/10.32983/2222-0712-2019-2-194-199

Section: Mathematical methods and models in economy

UDC 330.3:330.4

Abstract:
The work deals with the development of one of the methods for simulating the logistics system (LS) of an enterprise. The aim of the article is using the approach developed by J. Forrester to build a simulation model, based on which it is possible to perform mathematical co-optimization of the production capacity and advertising of an enterprise which produces a single product. The paper formulates a system of equations describing the LS of the enterprise. The calculations of the time behavior of all rates of the logistics system (rate of production, rate of delivery), as well as the behavior of the inventory levels at the wholesale warehouse and retail are carried out. The optimization problem of determining the maximum economic efficiency is formulated and solved. In this case, production capacity and advertising costs are considered as variable parameters of the optimization problem. By numerical calculations, it is proved that there is a single point of maximum economic efficiency as a function of the planned capacity of the enterprise.

Keywords: logistics system, production capacity, economic and mathematical model.

Fig.: 14. Formulae: 18. Bibl.: 8.

Sherstennykov Yuriy V. – Doctor of Sciences (Economics), Associate Professor, Professor, Department of Economic Cybernetics, Oles Honchar Dnipro National University (72 Nauky Ave., Dnіpro, 49010, Ukraine)
Email: hm001@ukr.net

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