Modeling the efficiency of the use of production potential

Abstract

The efficiency of modern agricultural business depends on many economic factors, the key driver of which is the production potential. At the level of certain business entities, this is the maximum possible output of the finished product in the conditions of the achieved volume of production factors (labor, capital, land). The problems of stabilization and further production increase in the agro-industrial complex of Russia require an increase in the efficiency of the use of production potential by all participants in the agricultural business. At the same time, the major impact of digital transformation on all sectors of the country’s economy changes the already established models of managing the production potential thus adapting them to modern information technologies. Therefore, in the current economic conditions, the success of the agribusiness entities largely depends on the ability to calculate, model the efficiency of the production potential use. The construction of an economic and mathematical model and the practical use of its results allows optimizing the production, material, personnel components of the production potential to ensure the maximum volume of finished products and achieve the best performance indicators.