April 2023
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289 Reads
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5 Citations
Chinese Business Review
The algorithm under this name, together with the variants, is a method that solves the problems of optimal flow and costs. Examples of such problems are planning and procurement, scheduling by contractors, distribution and supply systems, transport on the road or rail network, electricity transmission, computer and telecommunications networks, pipe transmission systems (water, oil, …), and the like. The main goal of any business organization is to increase profits and satisfy its customers. Because business is an integral part of our environment, their goals will be limited by certain environmental factors and economic conditions. The out-of-kilter algorithm is used to solve a complex allocation problem involving interactive and conflicting personal choices subject to interactive resource constraints. The paper presents an example of successful use of this algorithm and proposes an extension to the areas of corporate and social planning. Customer demand, warehousing, and factory capacity were used as input for the model. First, we propose a linear programming approach to determine the optimal distribution pattern to reduce overall distribution costs. The proposed model of linear programming is solved by the standard simplex algorithm and the Excel-solver program. It is noticed that the proposed model of linear programming is suitable for finding the optimal distribution pattern and total minimum costs.