The dairy processing plant purchases raw milk mainly from its headquarters, sometimes from local market, where the former can be viewed as production and the latter as outsourcing.Owing to the production capacity and management policy,both production and outsourcing levels are bounded.Raw milk supply can be backlogged because of dairy postponement allowed by customers.All of production,outsourcing and inventory/backlogging costs were as general concave functions.The problem was to satisfy all demands in the planning horizon by minimum total costs.To solve the problem,a novel adaptive penalty scheme was devised based on the feasible status of population and the degree of constraint violation for individuals.Furthermore,a new adaptive genetic algorithm was developed to solve the constrained optimization problem by using the penalty scheme.In order to test the performance of the proposed algorithm,we first made a selection examination to obtain the fittest operator combination and genetic operators' probabilities.Then,for four planning problems,by 50 runs of the algorithm,the advantages of the penalty scheme were verified by comparing with other common four penalty methods.