PRODUCT CONTENT PLANNING MODEL

Abstract

In this article, the problem of product mix planning is mathematically modeled on the basis of linear programming. The goal of the model is to determine the optimal production plan that maximizes total profit under the conditions of limited resources of the enterprise (labor time, equipment capacity, raw material reserves and market demand). As a solution, an optimization approach based on simplex/HiGHS-type algorithms is used, which resources in the optimal plan are binding (binding), which are non-binding (reserve), as well as an economic interpretation is given through shadow price (marginal value) indicators of resources. The results show that even a product with a positive unit profit can fall out of the optimal portfolio due to the “cost” of the link resources; therefore, not only the margin, but also the return per unit of the link resource is a decisive factor in the formation of the assortment.