TITLE:
Application of the Firefly Algorithm for Optimal Production and Demand Forecasting at Selected Industrial Plant
AUTHORS:
Abdulhadi Altherwi
KEYWORDS:
Firefly Algorithm, Global Optimization, Production, Lindo
JOURNAL NAME:
Open Journal of Business and Management,
Vol.8 No.6,
November
16,
2020
ABSTRACT: Many production companies continue to face financial difficulties. The
main purpose of this paper is to present an effective method for these
companies to maximize profits and minimize production costs. The problem
presented here is initially developed as a linear programming model. To achieve
the best results, the firefly algorithm (FA) is applied to solve the model and
obtain an optimum solution. In order to test the efficiency of the algorithm,
Lindo software is used, and the results of both algorithms are compared. A
sensitivity analysis is applied to determine which products a company should
produce in order to maximize profits. The result reveals that the FA, when
compared with Lindo, can help achieve maximum profits by producing only one
product, thus minimizing production costs. For demand forecasting, the moving
average technique is used to determine future customer demand. The mean squared
error method is used to choose the best forecast based on the historical data
collected.