Optimal Distribution of Production Tasks in a Concern

Abstract

The problem of the optimal distribution of production tasks within a large business entity (a concern, a corporation) is discussed in this paper. The fundamental aim is to determine such a distribution of production tasks that minimizes total production costs. For this purpose the author proposes an approach that takes into account Lagrange multipliers. The author formulates the conditions for the application of such an approach and the option of its possible application in practice.

Keywords

• production distribution
• method of lagrange multipliers
• cost minimization