OPTIMIZATION OF PRODUCTION PROGRAM IN VERTICALLY INTEGRATED CORPORATIVE STRUCTURES BASED ON MODELING OF PRODUCTION PROCESS PARAMETERS

It is typical for a vertically integrated corporate structure (VICS) that the results depend on the efficiency of all business enterprises, as they are linked technologically in one production process. Thus for VICSs which production capacities and technic development levels are aligned statistical modeling of production process parameters based on classic balance input-output model is provided. This allows to form a production process model to solve optimal planning problems with mathematical programming methods. It allowed to develop economic and mathematical models of VICS production program optimization, allowing to find bottlenecks and reserves to increase production. Thus, complex production process modeling is implemented both to solve tasks of optimal planning and to carry out economic analysis, which accomplishing allows to increase the effectiveness of VICS functioning and development.

Authors: A. S. Sokolitsyn, N. A. Sokolitsyna

Direction: Economics and National Economy Management

Keywords: Modeling, parameters, production process, resource product, matrix, coefficient, optimization, costs


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