Optimal Resource Allocation in Economic Systems: A Numerical Approach

Abstract

Optimal resource allocation is a critical challenge faced by modern manufacturing companies seeking to maximize profitability while adhering to resource limitations and market demands. This study investigates the application of numerical optimization techniques in addressing resource allocation complexities. Using a hypothetical case study of a manufacturing company producing electronic gadgets, we analyze the effectiveness of numerical methods in comparison to traditional analytical approaches. Through a detailed exploration of gradient-based optimization and derivative-free methods, we demonstrate the advantages of numerical optimization in achieving optimal resource allocations. Our findings underscore the significance of considering both demand forecasts and production capacities, leading to insightful policy recommendations for manufacturing companies and economic decision-makers. This research contributes to the field of economic optimization by highlighting the potential benefits of numerical approaches in enhancing resource allocation decision-making processes.