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Economic Analysis: Theory and Practice
 

Development and application of optimization models in the production capacity management strategy

Vol. 20, Iss. 7, JULY 2021

Received: 22 April 2021

Received in revised form: 10 June 2021

Accepted: 30 June 2021

Available online: 29 July 2021

Subject Heading: ANALYSIS OF INDUSTRIAL CAPITAL

JEL Classification: C61, D24, G31, L25, M11

Pages: 1368–1390

https://doi.org/10.24891/ea.20.7.1368

Evgeniya S. ZAMBRZHITSKAYA Nosov Magnitogorsk State Technical University (NMSTU), Magnitogorsk, Russian Federation
jenia-v@yandex.ru

ORCID id: not available

Subject. The article addresses elaboration of methods for strategic management of production capacities to bring them to practical use at the level of individual industrial enterprises.
Objectives. The purpose of the study is to develop optimization models to manage production capacities of industrial enterprises at the strategic level. The models are focused on bringing enterprise structure to the optimal condition in terms of output of products that are in demand in the market.
Methods. The study employs methods of analysis and synthesis, principles of consistency and complexity, theory of graphs, matrix calculus.
Results. To develop existing approaches to the strategic management of production capacities, I offer a multicriteria optimization model, structurally consisting of several mathematical programming problems.
Conclusions. If used, the optimization models for the development of a production capacity management strategy will enable modern Russian enterprises to significantly increase their competitiveness and operational efficiency, since the level of production capacity affects the positioning of an enterprise in the market, its cost structure, etc.

Keywords: production capacity, optimization model, graph-matrix modeling, strategy, management

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