Model and algorithm of activity-based capacity expansion

For the activity-based capacity decision of production system, a capacity expansion model based on the activity-based costing is built. The model integrates the product mix, activity capacity expansion in production activity system. According to the characteristics of this model, a hybrid heuristic algorithm (GA_LP) is produced, which uses genetic algorithm (GA) to optimize the capacity variables and linear programming (LP) to deal with continuous variables. The solution feasibility is studied, the comparison between GA and GA_LP is discussed, and the effectiveness of GA_LP is proved by numerical test.