The developed model employing the KARAT code made it possible to study the dynamics of plasma flows and neutron generation in a laser-plasma diode. The depth of the skin layer, instead of the Debye radius, as a spatial discretization parameter significantly reduced the number of grid nodes. The isolation system based on permanent magnets showed almost complete suppression of the return electron flow in the diode. The calculation also showed that an increase in the voltage in the discharge gap effects an increase in the ion current but it effects an even greater increase in the neutron yield. Investigations performed on an experimental model of the generator confirmed these findings.