Level Of Capacity Utilization Research Articles

Impact of COVID-19 on Small and Medium enterprises

The study aims to make an assessment of COVID-19 on Indian economy by analysing its impact on growth, manufacturing, trade and micro, small and medium enterprises (SME) sector, and highlights key policy measures to control the possible fallout in the economy. The impact of the pandemic across sectors and in different scenarios of complete, extended and partial lockdown, and at different levels of capacity utilization is massive on the Indian economy. India’s economy may barely manage to have a positive growth of 0.5 per cent in an optimistic scenario but also faces the possibility of a 3–7 per cent negative growth in worst case scenarios for the calendar year 2020. The impact is severe on trade, manufacturing and sSME sectors. The likely impact of COVID-19 from best case scenario to worst scenario are as follows: manufacturing sector may shrink from 5.5 to 20 per cent, exports from 13.7 to 20.8 per cent, imports from 17.3 to 25 per cent and SME’S net value added from 2.1 to 5.7 per cent in 2020 over previous year. The economy is heading towards a recession and the situation demands systematic, well targeted and aggressive fiscal-monetary stimulus measures.

THE TERM STRUCURE OF INTEREST RATE IN A SFC MODEL WITH INFLATION TARGETING AND ZERO MONEY FINANCING OF GOVERNMENT DEFICIT

The aim of the present paper is to build an SFC Post-Keynesian growth model for a closed economy with government activities that incorporates the Institutional Arrangement of fiscal and monetary policy that exists in many countries of the real world. More precisely in our model monetary policy will be conducted under the framework of Inflation Targeting Regime, direct money financing of government deficit will be forbidden by law and government issued interest rate-indexed bonds in order to finance its fiscal deficit. Hence the model is used to analyze the effects of a once-and-for all change in the level of government expenditures over the time path of investment to GDP ratio, profit share, capacity utilization, the spread between long-term and short-term interest rates and inflation. The results of the simulation show that a permanent increase in the level of government expenditures is followed by a permanent decrease in the investment to GDP ratio, a permanent increase in the spread between long and short-term interest rate, a permanent decrease in the level of capacity utilization and a permanent increase in the profit share, but with no lasting effects over inflation dynamics.

The processing industry development capacity in Ukraine: regional aspects

To ensure competitiveness in world markets in the context of deepening globalization processes, Ukraine needs to adjust its own raw material base, which will qualitatively change the structure of Ukrainian exports from raw materials to goods with a high share of value added. The purpose of the article is to assess the development capacity of chemical, textile, agro-processing, and woodworking industries of Ukraine on the basis of import substitution and export orientation and substantiation of organizational and economic forms of its practical implementation. The author’s interpretation of the term “capacity of industrial system development” is offered. Based on the results of the technological profile analysis, the level of capacity utilization and performance indicators of the largest chemical enterprises of Ukraine, and strategic guidelines for the development of promising chemical industries are substantiated and organizational and economic forms of realizing their capacity are suggested, in particular in the Western region. Proposals for ensuring competitive conditions for participants in the domestic market of light industry products are provided, the need for simplified regulatory procedures and investment incentives to ensure the development of domestic light industry enterprises is substantiated. An organizational mechanism for restoring the raw material base of textile and other industries is developed. The regions of Ukraine are grouped according to the capacity of timber harvesting and industrial processing. The perspective directions of development of the woodworking industry in the Western region (in the context of productions) are defined and the basic strategies of their realization focused on the internal and external markets of production are outlined. The organizational forms of realization of the development capacity of agro-processing productions in Ukraine and mechanisms of their institutional support are offered.

Data Management, the Pathway to Nigerian Development

A juxtaposition on Knowledge Economy as it relates to Nigerian economic condition where there is need to fully approach data-intensive innovations and programs in the attendant condition as it is germane to engender increased goods and services via production to an expanded GDP, economic growth cum development. An economic paradigm needed for the welfare of the citizenry, more importantly, for equitable distribution of resources as in resonance with Development Economics cum Knowledge Economy as branches of Economics that can transform an economy positively from a position of inadequate structures to a level of maximum capacity utilization, that is why this work seek to test if there is any significant relationship between data management and economic development in the selected economies by translating to increase in aggregate demand, investment and reduction in unemployment rate precisely in the developed or OECD economies relative to Nigeria as the economy in perspective. The work theoretically attempted to use Gross Domestic Product, GDP as the exogenous variable which is being impacted by data management as the endogenous variable using Ordinary Least Square, OLS methodology to evaluate if any correlating or significant relationship exist between GDP of an economy and information management in the face of feasible data policy. Therefore, this work posited that Data collection, management and storage with requisite policy in place can help the Nigerian economy achieve its full economic potential, capacity building and capacity utilization.

Performance Optimization in UAV‐Assisted Wireless Powered mmWave Networks for Emergency Communications

In this paper, we explore how a rotary‐wing unmanned aerial vehicle (UAV) acts as an aerial millimeter wave (mmWave) base station to provide recharging service and radio access service in a postdisaster area with unknown user distribution. The addressed optimization problem is to find out the optimal path starting and ending at the same recharging point to cover a wider area under limited battery capacity, and it can be transformed to an extended multiarmed bandit (MAB) problem. We propose the two improved path planning algorithms to solve this optimization problem, which can improve the ability to explore the unknown user distribution. Simulation results show that, in terms of the total number of served user equipment (UE), the number of visited grids, the amount of data, the average throughput, and the battery capacity utilization level, one of our algorithms is superior to its corresponding comparison algorithm, while our other algorithm is superior to its corresponding comparison algorithm in terms of the number of visited grids.

An Assessment of the Development Potential of Manufacturing Industries in Ukraine

To ensure the competitiveness in world markets in the context of deepening globalization processes, Ukraine needs to adjust its own raw material base, which will qualitatively change the structure of Ukrainian exports from raw materials to goods with a high share of value added. The purpose of the article is to assess the development potential of chemical, textile, agro-processing and woodworking industries of Ukraine on the basis of import substitution and export orientation, and to substantiate organizational and economic forms of its practical implementation. The authors propose an interpretation of the term “industrial system development potential”. The peculiarities of operation of the manufacturing industry in Ukraine are determined on the basis of a comparative assessment of the density of cross-sectoral links, the cost and innovation level of domestic and European chemical, textile, woodworking and agro-processing industries. Based on the results of the analysis of the technological profile, the level of capacity utilization and performance indicators of the largest chemical enterprises of Ukraine, the strategic guidelines for the development of promising chemical industries are substantiated and organizational and economic forms of realizing their potential are proposed, in particular in the Western region. Proposals for ensuring competitive conditions for participants in the domestic market of light industry products are provided, the need for simplified regulatory procedures and investment incentives to ensure the development of domestic light industry enterprises is substantiated. An organizational mechanism for restoring the raw material base of textile and other industries is developed. The regions of Ukraine are grouped according to the potential of timber harvesting and industrial processing. The perspective directions for the woodworking industry development in the administrative-territorial units of the Western region are defined (by production type), and the basic strategies of their realization, focused on the internal and external markets, are outlined. A comprehensive review of operation problems of agro-processing productions in Ukraine is made through the prism of their resourcing from a regional perspective. The key problems are outlined and the prospects for the development of grain, meat and milk productions are substantiated, based on current and forecasted trends in the respective commodity markets. Organizational forms for realization of the development potential of agro-processing productions in Ukraine and mechanisms for their institutional support are proposed.

ШЫҒЫС ҚАЗАҚСТАН ОБЛЫСЫНДА СҮТ ӨНДІРУ ЖӘНЕ ҚАЙТА ӨҢДЕУ

The target criteria of this study is to present the current state of the prospects for production and processing of milk in the East Kazakhstan region, which is the leading one in the production of dairy products in the country. The article provides a detailed analysis of the development of dairy industry in this region for the period 2015-2019 according to the following indicators: the volume of milk production and main types of dairy products, level of use of the average annual production capacity of milk processing enterprises; population demand for dairy products and their actual consumption. The quantity of produced assortment of products is analyzed, including processed liquid milk, cream, butter, cheese, cottage cheese. The main problems of the region's dairy industry development are identified, such as insufficient level of production capacity utilization, shortage and low quality of used raw materials that do not meet the requirements of sanitary standards, outdated material and technical base. To solve topical issues of providing dairy factories with raw materials in the region, it is necessary to form specialized dairy farms of large and medium size, expand the scale of agricultural cooperation. State support and stimulation of the activities of cooperating farms will help to increase production of raw materials in the dairy industry in the region, improve its quality, due to the observance of epidemiological standards and labor hygiene, full-fledged veterinary and breeding work, and will also solve problems related to ensuring employment of the population in the countryside security of the country.

The Impact of Policy Intensity on Overcapacity in Low-Carbon Energy Industry: Evidence From Photovoltaic Firms

This study evaluates the impact of policy intensity on overcapacity using listed Photovoltaic (PV) firms over the period 2011-2019 in China. We divide PV industrial chain into three segments, which are upstream, midstream and downstream. Results show that China's PV industry is diminishing returns to scale with low level of capacity utilization (20%). The enhancement of policy intensity can significantly promote overcapacity, but its impact varies in different policies and different enterprises. Fiscal subsidy has the largest positive effect in promoting overcapacity, followed by tax preference and land support. For three segments of PV industrial chain, fiscal subsidy, land support and tax preference play a significant role in promoting overcapacity in each segment; the increase in financial support exacerbates overcapacity in midstream. Furthermore, this study tests the effectiveness of an important PV policy posed by Chinese government in 2013. The results show that, the policy is inefficient in the short term. Nevertheless, it promotes the development of PV industry in the long term. It takes a long time to reduce positive effect of policies on overcapacity. This study provides a theoretical basis for the government to make comprehensive use of different policies.

COVID-19 and Indian Economy: Impact on Growth, Manufacturing, Trade and MSME Sector

The study aims to make an assessment of COVID-19 on Indian economy by analysing its impact on growth, manufacturing, trade and micro, small and medium enterprises (MSME) sector, and highlights key policy measures to control the possible fallout in the economy. The impact of the pandemic across sectors and in different scenarios of complete, extended and partial lockdown, and at different levels of capacity utilization is massive on the Indian economy. India’s economy may barely manage to have a positive growth of 0.5 per cent in an optimistic scenario but also faces the possibility of a 3–7 per cent negative growth in worst case scenarios for the calendar year 2020. The impact is severe on trade, manufacturing and MSME sectors. The likely impact (deceleration) of COVID-19 from best case scenario to worst scenario are as follows: manufacturing sector may shrink from 5.5 to 20 per cent, exports from 13.7 to 20.8 per cent, imports from 17.3 to 25 per cent and MSME net value added (NVA) from 2.1 to 5.7 per cent in 2020 over previous year. The economy is heading towards a recession and the situation demands systematic, well targeted and aggressive fiscal-monetary stimulus measures.

The impact of air transport market liberalization: Evidence from EU's external aviation policy

Following the decision of the European Court of Justice in 2002, which overruled its member countries’ Bilateral Air Services Agreements (BASAs), the EU has been negotiating Air Services Agreements as a block with third countries within the framework of its External Aviation policy. This paper explores whether routes governed by this policy have lower fares and higher service quality and load factors compared to those governed by BASAs, as would be expected in a liberalized air transport market. By analyzing traffic flows over 14 years between 28 EU countries and 27 external partners on 4 continents with which the EU has varying degrees of liberalization, we find that the external policy leads to 6% - 23% reduction in fares. Lower fares in turn spurred a 27% increase in demand and led to higher levels of capacity utilization.

How Economically Significant Are Unused Capacity Costs? A Large-Scale Empirical Analysis

This study uses a confidential Census sample of 151,900 U.S. manufacturing plant-years from 1974 to 2011 to investigate the impact of excluding the cost of unused capacity from key financial indicators, namely, product costs and gross margins. We estimate the magnitude of unused capacity cost as a percentage of sales to be about 4.8%, which for Compustat manufacturing firms in 2011 amounts to $142 billion (by comparison, the well-researched topic of research and development expenses totals to $223 billion). We find that excluding the cost of unused capacity decreases product costs by approximately 6% and increases gross margins by around 26%. These magnitudes are economically significant and pervasive across industries and over time. Excluding the cost of unused capacity also smooths the time-series variation in unitized product costs and gross margins, with the standard deviation of gross margins declining (significantly) by 5%. Additional analyses indicate the presence of congestion and other costs at high capacity utilization levels, as predicted by the operations literature. This paper was accepted by Suraj Srinivasan, accounting.

Distribution and capacity utilization in the United States: evidence from state-level data

Applying previously unused regional data to the problem of wage- versus profit-led growth, this paper estimates a demand-and-distribution system for a panel of US states for the years 1974 to 2014. Using variation in minimum-wage policy across states as an instrument for the labor share, I find that – at a regional level – the United States is strongly wage-led. In the absence of a satisfactory econometric identification strategy, I estimate the distributive curve non-parametrically. The results suggest the presence of significant non-linearities, with US states exhibiting profit-squeeze dynamics at low levels of capacity utilization and wage-squeeze dynamics at high levels. These results suggest difficulties for wage-led policy akin to a coordination failure.

Группировка промышленных предприятий по загрузке производственных мощностей и уровню банковской задолженности (за II квартал 2019 года)

Группировка промышленных предприятий по загрузке производственных мощностей и уровню банковской задолженности (за II квартал 2019 года)

Группировка промышленных предприятий по загрузке производственных мощностей и уровню банковской задолженности (за III квартал 2019 года)

Группировка промышленных предприятий по загрузке производственных мощностей и уровню банковской задолженности (за III квартал 2019 года)

СУЧАСНИЙ СТАН ПІДПРИЄМСТВ ОЛІЙНО-ЖИРОВОЇ ПРОМИСЛОВОСТІ УКРАЇНІ

The article considers the current state and trends of the oil and fat industry enterprises of Ukraine. The peculiarities of the industry were determined, among which, first of all, the high level of concentration of production. More than half of the industry's production capacity is accounted for by large industrial groups and their share in the total production volume is constantly increasing. The industry is characterized by the use of resource-saving technologies, a high level of competition, export orientation of enterprises. The reasons that attract investors to invest in the creation of new oil production enterprises in Ukraine were investigated. The dynamics of the volume of oilseed processing by Ukrainian oil processing enterprises by types of oilseeds for the period 2013–2019 was calculated and a forecast of the total volume of oilseed processing for 2021 was built. Verification of the calculated forecast showed that an increase in oilseed processing should be expected. A mathematical method of trend equalization was used to smooth the effect of fluctuations. The trend was aligned by a linear equation. An analysis of the oil products market was conducted. The problems faced by oil companies in the current conditions of high competition in the market of oil products were studied. The shortage of oil raw materials and, as a consequence, the low level of capacity utilization, unsatisfactory technical condition of enterprises and problems of quality of final products are identified as the main ones. Diagnosis of the rate of renewal of the active part of fixed assets in the oil and fat industry has shown that it is low and the share of worn-out equipment exceeds 70%. Some equipment has been in operation for more than 20 years. The financial results of 34 enterprises of the oil and fat industry were investigated. The margin between the maximum level of profitability and unprofitability of operating activities exceeds 120 percentage points. The reasons for this have been clarified. the directions of possible improvement of financial results of activity of the investigated enterprises were outlined. In general, the study concludes that to maintain Ukraine's leading position in the world oil market requires improvement of organizational, economic, technical, technological, informational and innovative support of enterprises in the industry, as well as a significant improvement in oil quality and compliance with European and world standards.

Productive efficiency and capacity utilization of sea bass grow-out culture in peninsular Malaysia

Sea bass (Lates calcarifer) is a key aquaculture species in Malaysia, produced as part of a polyculture system in cages but predominantly as a single species in ponds. The production of sea bass in Malaysia has decreased substantially since 2015. Several studies suggest disease may be the main cause for such decline, but changing economic conditions may also have played a role in this decline. In this paper, we use Data Envelopment Analysis (DEA) to examine these issues as well as identify the key drivers of efficiency and capacity utilization in the grow-out finfish industry. Our results suggest that most farms are technically efficient, but many are operating at lower levels of capacity utilization. Socio-demographic factors appear to affect pond production but less so cage production. The results suggest that the reduced output of sea bass is largely in response to changed economic conditions (output and input prices).

The development of the logistics system of the electric power complex

The article is devoted to the development of the logistics system of the electric power complex of the Russian Federation. The study analyzed the electric power potential, namely, the estimated capacity utilization, the availability of interstate power lines and the level of competitiveness of Russian electricity. As a result of the analysis, it was revealed that about 80 GW of production capacity is not used, interstate power lines allow transmitting tens of thousands of billions of kilowatt-hours, and the cost of electrical energy is much lower than in other states. Further, the work presented the development mechanisms of the logistics system of the electric power complex, which consist in the need to break down territories by the level of capacity utilization, determine the pace of development of territories, plan consumption and production of electric energy and determine the possibility of using existing electrical networks or building new intergovernmental transmission lines. At the end of the article, the main conclusions of the study are made.

Railway line capacity utilisation and its impact on maintenance costs

In this paper, we analyse how railway maintenance costs are affected by different levels of railway line capacity utilisation. Previous studies have focused on the wear and tear of the infrastructure, while this paper shows that it is important to also acknowledge the heterogeneity of the maintenance production environment. Specifically, we estimate marginal maintenance costs for traffic using econometric methods on a panel dataset from Sweden and show that these costs increase with line capacity utilisation. The results are significant considering that current EU regulation (2015/909) states that track access charges can be based on marginal costs, with the aim of achieving an efficient use of available infrastructure capacity.

Еnsuring the conditions of ecological safety of the surface water of Ukraine by calculating the values of their assimilative capacity

The values of discharge of circulating (waste) waters of different quality categories in surface water objects by regions of Ukraine are analyzed. For maintaining the natural equilibrium of aquatic ecosystems the indicators of actual and limit necessary of the multiplicity of dilution of circulating (waste) waters of different quality categories by local river runoff are calculated and analyzed. The values of the limit assimilative capacity of surface water objects, which can accept a certain amount of circulating (waste) waters without violating their ecological stability, is determined. The characteristics of the level of assimilative capacity utilization of local river runoff resources of different degrees of water availability are calculated and given. It has been established that in the years with average water availability the level of use of the assimilative capacity of local river runoff resources of the Nikolaev, Kharkiv and Kherson regions is characterized as “moderate”, and Odessa – as “high”. In the years with a very low river water content, the level of use of the assimilative capacity of surface water bodies in Kiev, Kirovograd, Luhansk, Lviv, Sumy and Cherkasy regions is rated as “moderate”, Mykolaiv and Kharkiv – as “high”, Kherson and Odessa – as “very high”. Regardless of the level of provision with local river runoff, the index of the use of the assimilative capacity of water resources in Zaporizhia, Donetsk, and Dnipropetrovsk regions exceeds the threshold value (IAC = 1) by 10.35–99 times.

Reliable Flexibility Design of Supply Chains Via Extended Probabilistic Expanders

It is well‐known that adding a little flexibility to the right place is an effective strategy to improve the performance of operations in the face of demand uncertainties, to ensure high level of capacity utilization. However, given that system disruptions are ubiquitous, the legacy flexibility designs may perform poorly under disruptions to supply or capacity installations. In this study, we focus on the design of reliable and sparse flexibility structures that consistently meet a reasonable performance criterion under disruptions to both demand and supply. Specifically, we propose a class of structures termed as extended probabilistic expanders, based on the conjecture that the expansion property, rather than the global connectivity, is critical to good performance of the structures. We prove that for a system with n retailers, essentially only O( n) supply routes between suppliers and retailers are necessary to ensure good performance under disruption. In addition, we present an efficient randomized algorithm to construct extended probabilistic expanders, and demonstrate that the construction yields very good structure with the least number of edges asymptotically. We also investigate an extension to systems with structural constraints. Numerical results demonstrate that our design has not only a wide range of applications, but also better performance than a variety of known structures.