OPTIMIZATION OF PRODUCT MIX PROBLEM USING GENETIC ALGORITHM

Abstract

Genetic Algorithm (GA) has been used as a design and validation tool in various Industrial production and design applications. Genetic Algorithm can also be utilized for finding the solution of a Product-Mix problem. Product-mix decisions using analytical methods such as Linear Programming (LP) are usually made so that the market demand is met and the firm profit is maximized. However, the complexity and stochastic and dynamic nature of real-world production and business systems may lead to a Product-Mix problem that is Non-linear in nature which renders it unsolvable by Linear Programming. Also, coping with various situations the Product-Mix problem may take such a form that is even unsolvable by existing analytical methods for optimum or near optimum results. Therefore, it's in some cases essential to use the Genetic Algorithm for solving such a product-mix problem. It very well offers the capability to cope up with the real-world situations. It is also a very sensitive tool. Therefore, the primary goal here is to highlight the importance of using Genetic Algorithm for Product-Mix problem, and provide solutions to some product mix problems to clarify the methodology