Open Journal of Business and Management

Volume 8, Issue 6 (November 2020)

ISSN Print: 2329-3284   ISSN Online: 2329-3292

Google-based Impact Factor: 1.02  Citations  

Application of the Firefly Algorithm for Optimal Production and Demand Forecasting at Selected Industrial Plant

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DOI: 10.4236/ojbm.2020.86151    125 Downloads   367 Views  
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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.

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Altherwi, A. (2020) Application of the Firefly Algorithm for Optimal Production and Demand Forecasting at Selected Industrial Plant. Open Journal of Business and Management, 8, 2451-2459. doi: 10.4236/ojbm.2020.86151.

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