A new simple algorithm for solution of optimization problems

• Published in: Journal of international studies (Kyiv) Vol. 11; no. 2; pp. 95 - 103
• Main Author: Abbasov, Jeyhun
• Format: Journal Article
• Language: English
• Published: Szczein Centre of Sociological Research 2018; Fundacja Centrum Badań Socjologicznych; Centre of Sociological Research/Tsentr Sotsiolohichnykh Doslidzhen; Centre of Sociological Research, Szczecin
• Subjects: Algorithms; Budget constraint; Economy; Fiscal Politics / Budgeting; Labor force; lag effect in optimization; Methodology and research technology; optimal allocation; Optimization; Optimization problem; Production factors; production function; Resource allocation; lag effect in optimization; optimal allocation; Optimization problem; production function
• ISSN: 2071-8330; 2306-3483
• DOI: 10.14254/2071-8330.2018/11-2/7

This paper is devoted to developing a new sample algorithm after the solution of optimization problems subject to a budget constraint in firms’ production. In the calculation of the optimal composition of different items, there is one fundamental problem. In general, firm’s behaviors are under a budget constraint and they always try to optimally allocate their resources among production factors. It is possible that there are some production factors like quality of labor force which influence firm’s production after some period. In this case, when we want to solve optimization problems for these firms, we can encounter that the objective function (Revenue function, Production function or some other) of the optimization problem depends on the lags of the mentioned production factors. Therefore, the realization of the allocation of firm’s resources among the production factors doesn't seem plausible (because some of them are on the lags). In this context, we have tried to prepare a simple algorithm for optimal allocation of firm’s resources in the same period, using an optimal share which has been found for different lags of variables.