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Economic Analysis: Theory and Practice
 

Optimizing the production plan of defense contractors under the high uncertainty and critical capacity utilization

Vol. 14, Iss. 31, AUGUST 2015

PDF  Article PDF Version

Received: 22 June 2015

Accepted: 27 June 2015

Available online: 31 August 2015

Subject Heading: Crisis management

JEL Classification: 

Pages: 2-12

Khrustalev E.Yu. Central Economics and Mathematics Institute of RAS, Moscow, Russian Federation
stalev@cemi.rssi.ru

Kotlukov K.K. Peoples' Friendship University of Russia, Moscow, Russian Federation
k.kotlukov@gmail.com

Importance Defense industry is a critical area; therefore, defense contractors require greater attention. Nowadays, their development is one of top priorities, and there are many long-term projects in this sphere. The article addresses the actions to be taken in the near future to improve the efficiency of defense enterprises using available resources.
     Objectives We attempt to develop a conceptual model to optimize the production plan using the ideas of multi-agent simulation that takes into account the characteristics of the target group.
     Methods
We analyze the current situation in the defense industry. Based on the analysis, we formulate basic requirements for the planning model under development. We also formulate the concept of production planning, using the latest developments in the field of multi-agent simulation.
     Results The article presents a conceptual model of the multi-agent planning system, which is capable to function in severe environment, including critical capacity utilization, and may respond to changes in the shortest time possible.
     Conclusions and Relevance
The developed concept takes into account the specifics of technologically complex production of the military-industrial complex; therefore, if applied, it may improve the productive efficiency at these enterprises.

Keywords: military-industrial complex, production, planning, multi-agent modeling

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