FLEXIBLE MANAGEMENT OF COSTS, PROFITS AND PRICES USING TARGETED PLANNING

2021 ◽  
Vol 298 (5 Part 1) ◽  
pp. 155-162
Author(s):  
OLIVER ORLOV ◽  
EYHENIYA RYASNYKH ◽  
Keyword(s):  
Innovation Policy ◽  
Supply And Demand ◽  
Cost Savings ◽  
Fixed Costs ◽  
Manufacturing Companies ◽  
Target Price ◽  
Market Conditions ◽  
Flexible System ◽  
Flexible Management ◽  
Economic Tools

Under market conditions, the main feature of enterprises is the focus on consumer demand, the desire for innovation, the implementation of appropriate scientific and technical innovation policy. Flexibility in management, the ability to restructure quickly without losing new opportunities can be more important than just cost savings. The high degree of uncertainty, which is characteristic of modern conditions of economic development, requires the use of flexible planning tools that allow you to quickly take into account changes in supply and demand, requirements for product quality, prices, etc. In the conditions of competition between producers and the need to improve their economic performance and, above all, profit, employees must have economic tools that would allow them to consider different options for prices, costs, scale of production, changes in the structure of its range and to monitor the consequences of these changes in the economy of the enterprise. One such tool is targeted planning of prices, costs and profits. It is believed that the methodology of target pricing and calculation of target costs was developed in Japan and it is based on a given level of price and profit. The difference between the target price and the target profit is the target cost. But this technology does not work in terms of multi-item production. The problem of the need for flexible management of costs, profits and prices in market conditions is outlining. On the basis of theoretical and empirical researches the critical analysis of foreign scientists’ points of view to the problem of “target profit” planning and “target prime cost” is given. As authors believe the latter are possible only for single-product manufacturing companies. It is suggested to form a flexible system of targeted planning suitable for multi-product companies on the basis of the fixed costs’ distribution in proportion to the marginal profit.

Production Process Modeling for Demand Side Management

2017 ◽  
Vol 871 ◽  
pp. 77-86
Author(s):  
Stefanie Kabelitz ◽  
Sergii Kolomiichuk
Keyword(s):  
Energy Efficiency ◽  
Energy Consumption ◽  
Supply And Demand ◽  
Demand Side Management ◽  
Mixed Integer ◽  
Mixed Integer Program ◽  
Business Practices ◽  
Demand Side ◽  
Manufacturing Companies ◽  
Consumption Data

The supply of electricity is growing increasingly dependent on the weather as the share of renewable energies increases. Different measures can nevertheless maintain grid reliability and quality. These include the use of storage technologies, upgrades of the grid and options for responsiveness to supply and demand. This paper focuses on demand side management and the use of flexibility in production processes. First, the framework of Germany’s energy policy is presented and direct and indirect incentives for businesses to seek as well as to provide flexibility capabilities are highlighted. Converting this framework into a mixed integer program leads to multi-objective optimization. The challenge inherent to this method is realistically mapping the different objectives that affect business practices directly and indirectly in a variety of laws. An example is introduced to demonstrate the complexity of the model and examine the energy flexibility. Second, manufacturing companies’ energy efficiency is assessed under the frequently occurring conditions of heavily aggregated energy consumption data and of information with insufficient depth of detail to perform certain analyses, formulate actions or optimize processes. The findings obtained from the energy assessment and energy consumption projections are used to model the production system’s energy efficiency and thus facilitate optimization. Methods of data mining and machine learning are employed to project energy consumption. Aggregated energy consumption data and different production and environmental parameters are used to assess indirectly measured consumers and link projections of energy consumption with the production schedule.

scholarly journals РОЗВИТОК СИСТЕМИ УПРАВЛІННЯ РЕСУРСНИМ ПОТЕНЦІАЛОМ АГРАРНИХ ПІДПРИЄМСТВ

2014 ◽  
pp. 133-135
Author(s):  
Д. В. Воловик
Keyword(s):  
Effective Management ◽  
Market Conditions ◽  
Resource Potential ◽  
Flexible System ◽  
Agrarian Sector ◽  
High Level

У статті визначено, що ефективне управління ре-сурсним потенціалом аграрних підприємств повинноявляти собою гнучку систему, що буде пристосову-ватись до ринкових умов та забезпечувати загальнийрозвиток підприємства. Проведений аналіз напряміврозвитку ресурсного потенціалу аграрного підприєм-ства і запропоновано основні напрями формуваннясистеми ефективного управління використаннямресурсного потенціалу, для розробки і впровадженняякої необхідно досягти високого рівня інформаційно-аналітичного забезпечення управління, що є необхід-ною умовою розвитку аграрного сектора економіки. It has been determined that the effective management of the resource potential of agrarian enterprises should be a flexible system that will adapt tothe market conditions and to ensure the overall development of the company. We analyzed the resource potential of the agrarian enterprise and offered the main directions of forming a system ofefficient management of resource potential, for thedevelopment and implementation of which we haveto achieve a high level of information and analyticalsupport of management, which is essential for thedevelopment of the agrarian sector.

Application of Target Costing and Performance Analysis: Evidence from Indian Automobile Industry

2021 ◽  
Author(s):  
NARSAIAH NERALLA ◽  
Keyword(s):  
Firm Size ◽  
Negative Relationship ◽  
Manufacturing Companies ◽  
Target Costing ◽  
Target Price ◽  
Product Price ◽  
Convenience Sample ◽  
Positive Correlation ◽  
Application Procedure ◽  
Return On Sales

The manufacturing companies must keep attention over challenges and for the moment of adopting technology and practices instead of observation of competition amongst competitor companies. To create automobile business successful in India, companies are essential to adopting better cost accounting techniques to minimize costs. Target Costing has been identified as a popular technique to accomplish company’s goals. Target costing consist exclusive approach to decide target price for the product and services. Target Costing ensure that new product price would be competitive in the market with substantial quality of products. This research investigates the application procedure of Target Costing (TC) in Automobile companies in India. This study employed Target Costing as a dependent variable and Profitability; Growth; Net Tangibility Assets (NTA); EPS and Firm Size as independent variables. The study adopted convenience sample of top ten automobile companies listed on BSE of India and panel data has covered from 2014-15 to 2018-19 financial years. The results determine the target costing impact on profitability had reported by Pearson’s correlation result shown a negative relationship. Target costing impact on Return on sales examined by simple regression analysis and revealed that there is positive correlation. Finally, Target costing impact on financial performance examined by multiple regression results revealed that there is positive correlation with Revenue from Operation; Profitability; Return on Sales (ROS) and Growth, while negative correlation revealed by Margin from Operation; ROA; Net Tangibility Assets(NTA); EPS and Firm Size.

E*Trade Securities, Inc., Poineer Online Trader, Struggles to Stay on To

2011 ◽  
pp. 48-72
Author(s):  
Adam T. Elegant ◽  
Ramiro Montealegre
Keyword(s):  
Strategic Alliances ◽  
Mutual Fund ◽  
Stock Options ◽  
Cost Savings ◽  
Management Team ◽  
Fixed Costs ◽  
Price Leader ◽  
One Stop ◽  
Fierce Competition ◽  
And Control

E*Trade revolutionized the securities brokerage industry by “creating” Internet trading. E*Trade’s original strategy was to deliver cost savings to customers while amortizing fixed costs over a greater number of accounts. In 1997, several competitors established Internet sites and E*Trade was dethroned as the price leader. Its management team introduced a strategic initiative to transform the company into a financial, one-stop shop for investors. The initiative included expanding its information technology, improving its marketing and advertising program, and developing new strategic alliances. By early 1999, E*Trade had established a popular Web site offering the convenience and control of automated stock, options, and mutual fund order placement at low commission rates. E*Trade’s success pleased management but was challenged by fierce competition and emerging ethical and operational problems.

The impact of supply chain fit on business and innovation performance in Brazilian companies

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ricardo Zimmermann ◽  
Luis Miguel D.F. Ferreira ◽  
Antonio Carrizo Moreira ◽  
Ana Cristina Barros ◽  
Henrique Luiz Correa
Keyword(s):  
Supply Chain ◽  
Business Performance ◽  
Demand Uncertainty ◽  
Supply And Demand ◽  
Empirical Studies ◽  
Innovation Performance ◽  
Manufacturing Companies ◽  
Content Type ◽  
The Impact ◽  
Positive Effect

PurposeThis paper investigates the effect of the fit between supply and demand uncertainty (SDU) and supply chain responsiveness (SCR) (SC fit) on business and innovation performance in Brazilian companies.Design/methodology/approachThe study presented an analysis carried out on an empirical study based on a sample of 150 manufacturing companies. Business and innovation performance of companies with different types of SC fit ( high–high and low–low fits) and misfit (positive and negative) are compared and discussed.FindingsThe results indicated that SC fit had a positive effect on both business and innovation performance. Further analyses suggested that companies with SC fit present similar business performance, independent of the level of SDU that characterizes the environment where they compete, while companies in environments with higher levels of uncertainty tend to present superior innovation performance. Companies with positive and negative misfit present similar performance.Originality/valueAn analysis of the literature showed that there is no consensus when it comes to the definitions and measurements of SC fit. The paper investigates the effects of SC fit on business and innovation performance, while previous empirical studies have mainly addressed its impact on financial performance. Moreover, this study compares the effects of two types of fit and two types of misfit and assesses SC fit in Brazilian manufacturing companies, analyzing the context of an under-researched reality.

scholarly journals prices

2018 ◽  
Author(s):  
Paul Erdkamp
Keyword(s):  
Market Integration ◽  
Supply And Demand ◽  
Price Formation ◽  
Market Conditions ◽  
Market Prices ◽  
Ancient Economy ◽  
Wide Range ◽  
Economic Forces ◽  
Modern Economic ◽  
Insight Into

While our sources mention numerous prices of a wide range of commodities, the question remains to what extent these prices offer insight into the ancient economy. Despite the wealth of data, reliable prices of everyday goods under normal market conditions are rare. The extent to which they can be used to analyze such topics as market integration, living standards, market stability, and inflation is limited. Only regarding Ptolemaic and Roman Egypt do we possess sufficient market prices (rather than imposed prices or valuations) to conduct meaningful analyses. For most of the rest of the empire, the prices—in particular those of everyday goods—are generally too uncertain, too sparse, and too diverse to form a solid basis for economic analysis. It is a valid question, moreover, to what extent prices in the ancient world reflect the interplay of supply and demand according to modern economic theory. Nevertheless, ancient writers depict price levels as depending on the interplay of supply and demand, and market transactions, as narrated in our sources, emphasizing competition and bargaining, make clear that price formation was largely determined by economic forces. Hence, prices fluctuated over time and differed in various places. The authorities tried to keep prices of staple foods low by influencing market conditions, but direct price fixing was rare.

scholarly journals Scientific approach to quantitative measurement and economic processes research in corporate management

2021 ◽  
Vol 107 ◽  
pp. 06008
Author(s):  
Oliver Orlov ◽  
Yevheniya Ryasnykh ◽  
Kathrin Dumanska ◽  
Olena Savchenko
Keyword(s):  
Cost Effectiveness ◽  
Cost Estimation ◽  
Quantitative Measurement ◽  
Profit Margin ◽  
Corporate Management ◽  
Fixed Costs ◽  
Manufacturing Companies ◽  
Calculation Methodology ◽  
Management Optimization ◽  
Management Approaches

Theoretical and methodological studies of quantitative measurement problems of the outcome economic indicators in corporate management are examined in the article. The author’s vision of scientific exploration as one of the corporate management optimization directions is offered and the basis of such direction as profit margin calculation methodology is presented. It is also suggested to solve problems of quantitative measurement of basic economic processes by using allocation of fixed costs in proportion to profit margin. The methodological basis for evaluating cost-effectiveness with the help of profit margin ratio is developed by the authors. It was revealed that fixed costs are the conditions for doing business and the functional purpose of profit margin is the fixed costs coverage. It is proved that in case of multi-assortment production one of the most effective corporate management approaches to cost estimation and pricing is the profit margin concept provided in this article. One of the advantages of proposed profit margin concept is the availability of special tools revealing the resources that allow covering fixed costs and generating profit with a given level of cost-effectiveness. The obtained results of further adoption can be applied as element of corporate management of manufacturing companies and enterprises in conditions of multi-assortment production and changeable economic environment

The Effects of Outsourcing in Logistics Services to Competitive Advantage

2016 ◽  
Vol 1 (4) ◽  
pp. 233 ◽  
Author(s):  
Mert KILIÇ ◽  
Ayşe GÜNSEL ◽  
Hülya GÜNDÜZ ÇEKMECELİOĞLU
Keyword(s):  
Competitive Advantage ◽  
Superior Performance ◽  
Fixed Costs ◽  
Manufacturing Companies ◽  
Structured Interviews ◽  
The Past ◽  
Logistics Services

As the competitive business landscape has dramatically changed in the past ten to fifteen years, firms have to face the fact that they should take the necessary steps to decrease the fixed costs and increase the quality for the long-term success and survival. Accordingly, the logistics in general, for the manufacturing companies in particular, becomes more and more important. Numerous companies, providing outsource services such as logistics, have emerged to answer this growing demand. Accordingly, in this study, we aim to reveal the effects of Outsourcing In Logistics Services (OILS) on firm competitiveness and success through Semi-structured interviews conducted on the logistics managers of 7 companies. The findings mainly demonstrate that; i) Companies attach a great deal of importance on OILS and ii) OILS contribute obtaining and sustaining competitive advantage which ultimately results in superior performance.

News from the Net: Reviews of books, software, and other instructional materials

2000 ◽  
Vol 7 (3) ◽  
pp. 150
Author(s):  
Sarah Irvine
Keyword(s):  
Supply And Demand ◽  
Instructional Materials ◽  
Fixed Costs ◽  
Board Game ◽  
Weather Forecasts ◽  
Link Type ◽  
The Cost

Thirsty? Then visit the Lemonade Stand at www.littlejason.com/lemonade. At this site, you will find the famous Web edition of the popular board game Lemonade Stand. Using the game, students learn about supply and demand, as well as how to manipulate production on the basis of geography, weather forecasts, advertising, and overhead, including such fixed costs as rent and the cost of ingredients. Students select a city and use their life savings of $5 to decide how much to advertise, how much lemonade to make, and how much to charge per glass. Once they have completed the form provided for these decisions, they receive instant feedback on how successful they were. Students have twenty-five days to make as much money as they can. The site also includes a high-score page and definitions of vocabulary used.

Millennium Company Ltd: overcoming tough times

2014 ◽  
Vol 4 (5) ◽  
pp. 1-5
Author(s):  
Rajiv Gopalkrishna Divekar ◽  
Pradnya Vishwas Chitrao ◽  
Pravin Kumar Bhoyar
Keyword(s):  
Corporate Strategy ◽  
Manufacturing Sector ◽  
Development Program ◽  
Cost Savings ◽  
Subject Area ◽  
Process Efficiency ◽  
Control Mechanisms ◽  
Manufacturing Companies ◽  
Content Type ◽  
And Control

Subject area Strategic marketing, Downturn, Optimal utilisation of minimal resources, Consolidating profitability, Focus shift from features to benefits and cost savings. Study level/applicability Management students who have knowledge of basic concepts of management discipline to derive the maximum benefit and understand the applicability; budding entrepreneurs; middle- and senior-level executives in an executive development program; people running family-owned businesses. Case overview In 2008-2009, the Indian manufacturing sector was facing stiff competition from China on account of the latter's ability to provide cheap labour and handle large volumes. The 2008-2009 economic down turn saw consumers cut down on their requirements with manufacturing companies getting fewer orders. Manufacturing companies therefore adopted the principle of optimal utilisation of minimal resources. Millennium Company Ltd (MCL) also succeeded in overcoming the 2008-2009 downturns through a shift in focus during the recession of 2009 from achieving pure revenue to consolidating its profitability. MCL is probably the only company in the world to have extensive expertise in both steam and control instrumentation. The dual expertise allows them to engineer industry-specific systems that focus on energy efficiency and utilities management for sectors as diverse as textiles, food processing, paper, power and chemicals etc. The company shifted its attention from features to benefits, cost savings, and profitability. MCL trained its people as to what to talk to whom. Today, MCL is a leader in India in process efficiency and energy conservation through technology tie-ups and focused investments in manufacturing and research. Expected learning outcomes The purpose of this case is to enable student managers to evaluate effectiveness of corporate strategies; make the student managers understand the resources–businesses–systems framework and the need for focused connection between these three through appropriate coordination and control mechanisms for a corporate strategy to deliver value; encourage students to apply their knowledge of Turnkey Projects, BCG/Porters/SWOT/Mackensys Model; encourage the students to research and find out how other companies in this field fared and what were the strategies adopted by them to overcome the recession and compete with MCL in a highly competitive market like that of India; and encourage student managers to go on field visits with the institute's help to similar organisations within the same city and if possible get live projects. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes.

Sign in / Sign up

Export Citation Format

Share Document