MODELING EFFICIENCY OF PRODUCTION ACTIVITY OF THE ENTERPRISE

  • O. Kharchenro National Technical University of Ukraine “Igor Sikorsky Kyiv Polytechnic Institute”
  • K. Sadovnichenko Boris Grinchenko Kyiv University
Keywords: production function, modeling, optimization, efficiency, operating profit

Abstract

The study of the peculiarities of the functioning of enterprises in the conditions of market competition has made it possible to determine that the state of economic activity of agrarian enterprises of Ukraine and the prospects for their further development depend mainly on the efficiency of the functioning of their production potential. It is determined that the efficiency of production activity is a complex reflection of the final results of the use of productive resources (capital, labor, information) over a certain period of time. It is precisely because of this that the problem of increasing the efficiency of the enterprise's production activity is to achieve the maximum possible increase in the volume of production (income, profit) per unit of labor resources, labor, material and financial. Consequently, in the conditions of uncertainty and aggravation of competition between agricultural producers, there is a need for theoretical substantiation and methodological support for the process of modeling the efficiency of the production activity of the agrarian enterprise.The article proposes and implements a methodical approach to modeling the efficiency of the enterprise's production activities. On the basis of multi-factor correlation-regression analysis, multiplicative models of the production function of Cobb-Douglas for the agrarian enterprise were constructed, where the net result was realized from the sales of products, and the factor - the residual value of fixed assets as a factor of capital, the annual wage fund as a labor factor. On the basis of the model of production function, the target function was constructed, which made it possible to solve the problem of maximizing operating profit in the short and long-term periods. In addition, a study of the selected enterprise has made it possible to indicate that the company has the necessary capacity to reproduce and increase the level of efficiency of its production activities by additional involvement of the corresponding number of employees, optimization of the structure of material costs and updating of fixed assets. The further possibility of their realization in the economic activity of enterprises is determined.

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Published
2018-12-28
How to Cite
Kharchenro, O., & Sadovnichenko, K. (2018). MODELING EFFICIENCY OF PRODUCTION ACTIVITY OF THE ENTERPRISE. Entrepreneurship and Innovation, (6), 153-159. Retrieved from http://www.ei-journal.in.ua/index.php/journal/article/view/160
Section
Practice innovation and entrepreneurship