Abstract
This article reveals that essential oil production is a complex system with a large number of economic ties arising in the process of growing and processing as well as distribution of products made from essential oils raw materials. Multileveled manufacturing process of essential oils products requires coordination of all the elements to reduce costs in the entire supply chain. It is proposed to use mathematical modeling of the supply chain based on the method of main faces, which allows to take into account the specifics of the problem and makes it possible to use a variety of combinatorial and heuristic algorithms.
Highlights
During the production and consumption of any type of product between the participants in the process, numerous connections arise through which the economic interests of producers and consumers are realized [1]
The system of economic relations can be considered as a set of organizational and economic measures that provide the participants in the production process with the necessary conditions for their development, proportionality, rhythm and optimal operation of all links of a single technological chain, as well as timely promotion and sale of the final product to the consumer [2]
The study showed that essential oil production is a complex system with a large number of economic relations, formed as a result of the interaction of the agricultural, industrial and marketing sectors, each of which performs its functions separately
Summary
During the production and consumption of any type of product between the participants in the process, numerous connections arise through which the economic interests of producers and consumers are realized [1]. The mechanism of relationships consists of many elements, which are combined into three groups: organizational and management, production and technology, and financial and economic relationships. These groups of relationships cover all stages of production and sale of the final product [3]. Financial and economic relations reflect the essence of commodity-money relations through such economic categories as cost, price, profit, profitability. In this case, a special meaning justified to distribution of profits is of particular importance. The main task of financial and economic relations is to ensure an equivalent exchange of labor results between all participants of production activities [4]
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