Earning Power Modelling for Manufacturing Operation

Abstract

One of the most important criteria to consider while analysing the MTO company’s ability to make a profit in a competitive market is earning power. Specifically, this is defined by the Earning Power criterion. This means that the Earning Power modelling is a solid strategy for selecting and assessing which orders will bring profit to companies. As a result, a company manager must provide a model that can interact with the economic environment to make an offer and a price quotation to ensure the competitiveness of the company. In this article, we analyse this criterion for the processing operation.