USING THE METHOD OF SUCCESSIVE CONCESSIONS FOR SOLVING THE PROBLEM OF INCREASING COST PRICE

2020 ◽  
Vol 10 (86) ◽  
Author(s):  
Nataliia Dovha ◽  
◽  
Hryhorii Tsehelyk ◽  
Keyword(s):  
Mathematical Problem ◽  
Rate Of Change ◽  
Cost Price ◽  
Production Costs ◽  
Production Plan ◽  
Numerical Function ◽  
Use Of Resources ◽  
Maximum Price ◽  
The Cost ◽  
The Impact

The processes of optimization of the production plan according to certain criteria were investigated. One of the problems is the difficulty of coordination and taking into account the impact of criteria on the optimal production plan. In practice, every company often faces tasks that require decisions that are quite complex and significantly affect the result. The choice of the best solutions is usually made by using a single numerical function - the criterion of optimality. The best solution is one that provides the maximum (or minimum) of the selected criterion. For the most part, the quality of decisions is characterized not by one but by many incomparable criteria. Therefore, it is necessary to make decisions based not on one but on many criteria. That is why the investigation and implementation of multicriteria models is an important stage in the development of modern science. The current rate of change in production is very high. To meet new needs and maintain the competitiveness each enterprise, firm, company must be able to make fast and correct decisions. Properly formed production program allows companies to meet the needs of consumers in products that are produced with the best use of resources, and get the maximum profit. Quite often there is a need to use mathematical methods to study this problem. The results obtained by solving a mathematical problem will make it possible to make optimal recommendations for certain actions. The main purpose of the company is usually to make a profit. One of the factors on which profit depends is the cost price. In view of this, an optimization model of the problem of increasing the cost price was proposed. The maximum price of manufactured products and the minimum costs for production was taken as criteria. At the same time it is impossible to ensure the maximum price and minimum production costs. Therefore, the solution was achieved by step-by-step solution of the proposed mathematical model of optimization of the production plan using the idea of the method of successive concessions, which would provide a certain price at low cost. An example shows an algorithm for solving this problem.

scholarly journals The impact of the logistics management in customer satisfaction

2017 ◽  
Vol 11 (1) ◽  
pp. 292-301
Author(s):  
Amine Ghoumrassi ◽  
Gabriela Țigu
Keyword(s):  
Customer Satisfaction ◽  
Poor Quality ◽  
Business Owners ◽  
Production Costs ◽  
Logistics Management ◽  
Industrial Companies ◽  
Supply And Distribution ◽  
Reducing Costs ◽  
The Cost ◽  
The Impact

Abstract Logistics management is one of nowadays tools to face economic challenges; it’s a mix of business and core activities of the organization. The supply and distribution activities integrated together form what’s known as logistics activities. The logistics activities within a business organization attempt to satisfy customers through achieving the time and location related market challenges and also through the cost of the service provided as well as the quality, taking into consideration customers needs and purchase power. Customer satisfaction is important because it provides marketers and business owners with a metric that they can use to manage and improve their businesses. Customer satisfaction is also a way to determinate the continuity of the business or of a product life by measuring the loyalty of the customers. If the customers are happy and satisfied, it will ensure the continuity of sales which means the continuity of the business. In the past customer satisfaction was more focused on requirements such as quality and reliability reducing costs of poor quality. In mid 50’s the production costs were continuously increasing, The way to maintain the company’s position within a changing market and increase profit starts by focusing on the service provided to the customer and on decreasing the cost, logistics activities became the backbone of these organizations that target the customer satisfaction while achieving competitive advantage. This study aims to show the impact of the logistics management on customer satisfaction in small and mid-sized Algerian industrial companies, by interviewing the companies managers and everybody in charge of the logistic process, the interview questions will be based on some literature review issues.

An Investigation Into the Decision Analysis of Design Process Decisions

2010 ◽  
Vol 132 (12) ◽  
Author(s):  
Stephanie C. Thompson ◽  
Christiaan J. J. Paredis
Keyword(s):  
Decision Analysis ◽  
Design Process ◽  
Material Selection ◽  
Information Economics ◽  
Problem Formulation ◽  
Additional Information ◽  
Use Of Resources ◽  
Primary Driver ◽  
The Cost ◽  
The Impact

Although recent work in decision-based design (DBD) recognizes the need for an enterprise perspective in which the expected profit is the primary driver of utility, for the overwhelming majority of contributions in the DBD literature, the emphasis in the problem formulation is exclusively on the design artifact. This formulation of DBD problems is too narrow in scope, because the use of resources during the design and development phase is overlooked, making it impossible to consider the tradeoffs between the quality of the design artifact and the cost of the design process. We aim to establish a new DBD perspective that more accurately represents the tradeoffs under consideration in an enterprise context by studying the design actions with decision analysis. As a first step toward establishing this new perspective, a simple example problem of material selection for a pressure vessel is introduced and analyzed in this paper. Although several simplifying assumptions are made, the intent of this work is to qualitatively explore the impact of relaxing some of the assumptions implicitly made in previous work in DBD, specifically the assumption of ignoring the costs of the design phase and the assumption that the value of a particular analysis is independent of the ability to gain additional information from subsequent analyses. This work confirms that an analysis is worth performing only when the cost is low, the quality is high, and the overlap in the predicted utility of the two concepts is significant. These insights are also compared with the related work in information economics. We show that the decision analysis of design process decisions provides a more comprehensive model of the problem when multiple information sources can sequentially be used.

scholarly journals The cost disadvantage of steep slope viticulture and strategies for its preservation

OENO One ◽  
2021 ◽  
Vol 55 (1) ◽  
pp. 49-68
Author(s):  
Larissa Strub ◽  
Simone Mueller Loose
Keyword(s):  
Net Present Value ◽  
Univariate Analysis ◽  
Steep Slope ◽  
Production Costs ◽  
Pricing Policy ◽  
Fixed And Random Effects ◽  
Option Strategies ◽  
The Cost ◽  
Steep Slopes ◽  
The Impact

The falling fallow of steep slope vineyards is caused by cost disadvantages that have not been analysed so far. This study quantified the production costs of different types of steep slopes, identified cost drivers within viticultural processes and assessed the impact of grape yield on the production cost for vertical shoot positioning (VSP) systems. It also examined under what conditions the reshaping of steep slope vineyards into transversal terraces (TTs) is economically viable. Costs were derived from a dataset of 2321 working time records for labour and machine hours from five German wine estates over three years. The costs for standard viticultural processes were compared across five site types with different mechanisation intensities by univariate analysis of variance with fixed and random effects. The net present value (NPV) of reshaping slopes into horizontal terraces was also assessed. Manual management of steep slopes was determined to be 2.6 times more costly than standard flat terrain viticulture. The cost disadvantage of steep slopes mainly stems from viticultural processes with limited mechanisability that require specialised equipment and many repetitions. Current subsidies fall short of covering the economic disadvantage of manual and rope-assisted steep slopes. Climate change-related drought and yield losses further increase the economic unsustainability of steep slopes. Under certain conditions, the transformation of manual steep slope sites into TTs can be a viable economic option. Strategies to reduce the cost disadvantage are outlined. The estimated cost benchmarks provide critical input for steep slope wine growers’ cost-based pricing policy. These benchmarks also give agricultural policy reliable indicators of the subsidies required for preserving steep slope landscapes and of the support needed to transform manual steep slope sites into TTs.

Digitalization and digital platform in the economic development of the agricultural sector

Ekonomika APK ◽  
2020 ◽  
Vol 314 (12) ◽  
pp. 67-73
Author(s):  
Liubov Vodianka ◽  
Tetiana Yurii
Keyword(s):  
Economic Development ◽  
Agricultural Sector ◽  
Crop Yields ◽  
Production Costs ◽  
Planning System ◽  
Practical Significance ◽  
Economic Research ◽  
Digital Platform ◽  
Use Of Resources ◽  
The Impact

The purpose of the article is to reveal the modern significance of digitalization and digital platforms for the economic development of the subjects of the agricultural sector of the economy. Research methods. The following methods were used in the research process, in particular: abstract-logical method (when studying the theoretical foundations of digitalization of the economy), monographic (to clarify the essence of the relevant categories), comparative analysis (when studying the level of digitalization of agricultural holdings «Dream» and «Svarog West Group») economic-statistical (in identifying trends and patterns of development of the state economy), illustrative (for a visual representation of the digital platform of agriculture), as well as methods of systematic approach, grouping and generalization, other methods in the field of economic research. Research results. The need to use a digital platform, especially for small and medium-sized agricultural enterprises, has been identified. In particular, this system will allow: public authorities (to make a plan of visits and yields; to report on the allocation of subsidies, as well as their use; to conduct a financial audit for each enterprise; to assess the competitive advantages of each enterprise; enterprises (to analyze data from weather stations; to study information on the condition of soils; choose crops for sowing; assess the risks of crop loss; obtain data on climatic risks). Scientific novelty. Theoretical provisions on the impact of digitalization of the economy on agricultural production and the need for digitalization of production and economic processes have been further developed. Practical significance. As a result of the implementation of the proposed digital platform in agriculture, the following benefits will be obtained: increased crop yields; the field planning system will improve; reduce production costs based on efficient use of resources and science-based approaches Figs.: 1. Refs.: 17.

Role of APQP and PPAP in Supply Chain Management

Paradigm ◽  
2005 ◽  
Vol 9 (2) ◽  
pp. 86-95
Author(s):  
V.K. Khanna
Keyword(s):  
Supply Chain ◽  
Quality Management System ◽  
Raw Materials ◽  
Cost Effective ◽  
Production Costs ◽  
Goods And Services ◽  
Use Of Resources ◽  
Effective Manner ◽  
Challenges And Opportunities ◽  
The Cost

Waves of liberalization are sweeping all over the world breaking political barriers, integrating world capital and financial markets, opening up international trade and freeing import of technology or raw materials from licenses. New challenges and opportunities have been thrown up. The new economic scenario has also brought in risks of increased competition. As the customer is supreme, only those enterprises are going to be successful, which are able to provide goods and services to the customer in a timely cost-effective manner and also provide quality, which not only satisfies him but delights him. This means that the enterprise has to manage its operations in such a way that the production costs and delivery costs are kept to the minimum and margins are optimized. Simultaneously, it has to build a culture of quality and productivity because without that it is just not possible to survive. Finally, to stay always one step ahead of the competition, there has to be an element of creativity. Advance Product Quality Planning and Production Part Approval Process help the organization to be creative and innovative in approach in addressing all customers' related issues. Both these tools are very important while implementing quality management system requirements pertaining to ISO/TS 16949:2002. These tools are generic in nature and can help any type of industry. Effective implementation of PPAP will help the supply chain to improve the quality of the product, reduce the cost by optimal use of resources and maintain on time delivery at competitive cost.

scholarly journals Residue Cost Formation of a High Bypass Turbofan Engine

2020 ◽  
Vol 10 (24) ◽  
pp. 9060
Author(s):  
Lugo-Méndez Helen ◽  
Castro-Hernández Sergio ◽  
Salazar-Pereyra Martín ◽  
Valencia-López Javier ◽  
Torres-González Edgar Vicente ◽  
...  
Keyword(s):  
Waste Heat ◽  
Production Costs ◽  
Turbofan Engine ◽  
Exhaust Gases ◽  
External Resources ◽  
Functional Product ◽  
Chemical Exergy ◽  
The Cost ◽  
The Impact

The kinetic energy produced by a turbofan engine is inseparable from the unavoidable generation of waste heat dissipated into the environment and the chemical exergy of exhaust gases. However, exergoeconomic cost analyses of these propulsion systems have focused only on the formation process of the functional product and not the cost of residue formation. In this study, symbolic thermoeconomics was applied to evaluate the impact of residue formation on the production costs of a turbofan engine and analyze the effect of component malfunctions on the fuel impact formula for diagnosing anomalies. The GE90-115B high bypass turbofan engine under takeoff conditions and a thrust requirement of 510 kN was considered as a case study. The total exergoeconomic cost of the engine was 26,754.28 USD/h: 61.04% corresponded to external resources; 0.14% and 33.07% corresponded to waste heat dissipated from the bypass and core engine, respectively; 3.28% corresponded to the chemical exergy of the exhaust gases; 2.47% corresponded to capital and operating costs. A malfunction analysis revealed that a 1% reduction in the isentropic efficiency of the compressor reduced the total kinetic exergy by −0.77 MW, increased fuel consumption by 0.49 MW, and generated irreversibility and residue of 0.80 and 0.45 MW, respectively.

scholarly journals ACCOUNTING AND ANALYTICAL ASPECTS OF COST MANAGEMENT IN AGRICULTURAL ENTERPRISES

2021 ◽  
pp. 29-39
Author(s):  
Ivan Svynous ◽  
Olesya Havryk ◽  
Tetyana Matula
Keyword(s):  
Cost Management ◽  
Cost Accounting ◽  
International Standards ◽  
Production Costs ◽  
Inductive Method ◽  
Accounting System ◽  
Theoretical Understanding ◽  
General Process ◽  
The Cost ◽  
The Impact

Introduction. The issues of management of production costs of the enterprise have become important for domestic businesses after the transition of the economy to market principles of doing business. In the command-administrative system of management, pricing was the prerogative of state authorities, ministries and departments and was based on the implementation of a cost approach, which involves the inclusion in the cost of products of the full cost of its production and sale. Methods. During the research general and special methods of research of processes and phenomena in their interrelation and development were used, namely: monographic (at formulation of the purpose, tasks, subject and object of research); method of comparative analysis (in the study of the concepts of strategic cost management). At the stage of observation of business transactions, collection, measurement, design, registration, systematization and processing of information for research, the inductive method was used, and the deductive method was used in the process of theoretical understanding of the problem. Results. We believe that the main characteristics of the cost management system of an agricultural enterprise should be: phased implementation of the process; inclusion in the general process of enterprise management; establishing the impact of the external environment of the business entity; determining the characteristics of the internal environment; availability of feedback. Discussion. At the stage of reforming the domestic accounting system, the issue of terminology should be given special importance. It is advisable to use in regulations the definition of costs and expenses, limiting the scope of these categories and providing the possibility of their unambiguous qualification by enterprises that prepare reports for interested users, both external and internal. Prospects for the application of IFRS in Ukraine in terms of cost accounting require understanding of the basic ideas and meaning of international standards and research, the results of which will approximate, and further bring the guidelines and rules of cost accounting in Ukraine in accordance with international financial reporting standards. Keywords: production, management, costs, expenses, accounting, prime cost.

scholarly journals A Analisis Daya Saing Usaha tani Kopi Libtukom Di Kabupaten Tanjung Jabung Barat

2020 ◽  
Vol 4 (1) ◽  
pp. 692-715
Author(s):  
Popy Handayani Handayani
Keyword(s):  
Descriptive Analysis ◽  
Secondary Data ◽  
Research Area ◽  
Production Costs ◽  
Selling Price ◽  
Use Of Resources ◽  
Secondary Data Sources ◽  
Asean Economic Community ◽  
The Impact ◽  
Policy Analysis Matrix

              After entering the era of free trade in 2015 in the ASEAN Economic Community (MEA) and 2020 around the world through WTO (World Trade Organization) agreement, many things must be considered, each country is required to improve its competitiveness through development in various sectors of the economy especially the goods to be exported to the destination country.               The purpose of this research is to analyze the competitiveness of Libtukom Coffea (competitive and comparative advantage), analyze the impact of government policy on output and input on libtukom coffea farming and analyze competitiveness sensitivity of Libtukom coffea farming to change of output and input. This study uses primary and secondary data sources, to determine the number of respondents calculated by the formula slovin diproleh number of respondents as much as 92 respondents. The data obtained were analyzed using descriptive analysis method and the infractional method by tabulating and processed by using PAM (Policy Analysis Matrix) method. From the result of the research, it can be concluded that: (1) Cultivation of libtukom coffea in Distric of West Tanjung Jabung has comparative and competitive advantage. The use of resources in the research area at the market and international market rates is efficient for economic and financial use as indicated by PCR and DRCR values ​​obtained <1, for PCR obtained 0.195 and DRCR 0.176; (2) In general, local government policies for leather farming still have not shown favorable partiality for small farmers. This can be seen from the result of NPCO value obtained <1 that is equal to 0.912 and seen from NPCI that> 1 is 1.006 and (3) In the simulation of sensitivity done obtained the production costs incurred by each farmer for libtukom coffea cultivation can be covered by the selling price earned.

scholarly journals MANAGEMENT OF POWER IN ASPECTS OF ENERGY PRODUCTION PRICES FOR FUEL ENERGY GENERATORS

2020 ◽  
Vol 10 (3) ◽  
pp. 56-59
Author(s):  
Konrad Zuchora
Keyword(s):  
Power Systems ◽  
Energy Production ◽  
Cost Model ◽  
Electrical Power ◽  
Hydrocarbon Fuel ◽  
Production Costs ◽  
Fuel Prices ◽  
Engine Model ◽  
The Cost ◽  
The Impact

The article describes the impact of a fuel-consuming power generator on energy production costs. The research is based on a thermodynamic engine model for which the energy source is hydrocarbon fuel. The results of the studies on the thermodynamic engine are energy cost functions for which the variable is electrical power. The presented characteristics reflect the impact of fuel prices on the minima of the cost function. In addition, the characteristics reflect the location of the extremes of functions in the coordinate system relative to the maximum of the function of efficiency. The article concludes with a cost model for thermodynamic engines for which hydrocarbon fuel is purchased. Article proposes the cooperation of generators with renewable sources to increase and stabilize the power rating of power systems.

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