The research of the production function of an industrial enterprise

Alexandr Rezepin,Taya Amirova,Vera Mishina,A.A Radionov,T.A Khudyakova,A.V Keller,A.V Shmidt,Y.B Kolbachev,V.V Savaley,I.A Bayev,A.V Babkin

doi:10.1051/shsconf/20173501038

Abstract

The article deals with the use of a production function model for the description of production process and the solution of practical problems, such as choice of technological method of production, rational and effective use of invested funds. Analysis of the production process is carried out by the example of Urals Stampings Plant. The analysis consists of two parts. In the first part with the use of regression analysis the production function is evaluated and the elasticity of revenue is calculated on the cost for main types of resources. In the second part of the analysis with the help of artificial neural networks constructing authors investigate the significance of influence the dynamics in the number of production factors and productivity on the physical volume of the issue. In conclusion, the authors provide recommendations for the implementation to increase the level of productivity of the investment strategy for the Urals Stampings Plant.

Highlights

The development of market relations demands much of business entities
Development of the investment strategy of the enterprise is based on the assessment of the production process and the use of economic resources
The development of a theoretical model of the production process is the subject of numerous scientific papers

Summary

Introduction

The development of market relations demands much of business entities. They should be able to make independent and effective decisions based on analysis and evaluation of current and future economic situation, clearly formulate the goal of development and work out a strategy to ensure long-term competitive advantages of the company's development. The problem of choosing the technological mode of production and form of reproduction of the basic production assets is largely a problem of rationalizing the volume of invested funds and providing their effectiveness in the long term. Development of the investment strategy of the enterprise is based on the assessment of the production process and the use of economic resources

The Theoretical Model of Production

The production function estimation of an industrial enterprise

B Error Beta

Findings

Analysis of the production factors