Profit Maximization Research Articles

Decision of a trade credit policy in a supply chain model of growing items under linguistic fuzzy term set

ABSTRACT This article deals with a novel trade credit policy for growing items where the buyer collects the new born items from a supplier and sells them to the consumers when they are grown up. The supplier provides a credit period to the buyer through negotiation. From the buyer’s view point first of all, a profit maximization growing items with carbon emission supply chain model has been studied under three different scenarios over the length of credit periods. To capture the non-random uncertainty of the model parameters and the learning effects we have assumed the demand rate of the consumers and all the cost parameters as triangular fuzzy linguistic terms set by means of a learning matrix. For defuzzification we have utilized the eigen values of the corresponding fuzzy learning matrices and solved the problem with the help of a solution algorithm under optimum number of new born items. However, for numerical computations we have utilized the data set studied by Alamri from a real case study. A comparative analysis has also been discussed for model validation. Finally, sensitivity analysis and graphical illustration are carried out to focus the novelty and to study the impact of the inventory parameters of the proposed approach.

Return strategies and channel pricing in omni-channel retail considering heterogeneous customer perceptions

As Internet technology advances, the retail industry is increasingly adopting omni-channel operational strategies. This research delves into the interplay between return losses and customer perceptions of online products, and how these factors influence profit-maximizing omnichannel retailers’ optimal return strategy and channel pricing. Previous studies have primarily focused on cross-channel aspects and have not thoroughly explored the impact of return loss on profitability in an omni-channel context. The study assumes that profit-maximizing retailers allow consumers to choose their purchase channels based on perceived utility of different channels, while adhering to the retailer’s stipulated return strategy. To this end, we introduce three distinct return strategies (returning products via the original purchase channel, offline return, and online return) for omni-channel retailers. We aim to identify the most profitable return strategy by considering diverse return losses associated with each channel and consumers’ perceptions of online products. Our analysis identifies scenarios in which a particular return strategy either boosts or reduces retailer profit, thereby facilitating optimal channel pricing decisions. Our findings reveal that customers’ purchasing channel selections are affected by their perception, retailer’s return strategy, and net return loss. We also find that no matter what kind of operation scenarios the retailers adopted, the retailers should let all customers return to the online channel to generate maximum profit when the difference between the retailer’s online and offline net return loss is less than the difference between the customer’s online and offline return hassle cost. Conversely, an offline return strategy proves more profitable. Our findings are supported by numerical simulations, guiding omni-channel retailers in making informed decisions regarding return strategies and channel pricing.

Analyzing Profitability, Leverage, and Company Size on Tax Avoidance: Literature Review

Paying taxes is a citizen's responsibility. According to Tax Law Number 28 article 1, 2007 (KUP), tax is a payment obligation carried out by individuals or legal entities to the state without compensation, and is used to meet tax needs managed by the state. But on the other hand, companies are organized to obtain maximum profits. Differences in the interests of taxpayers and the government can lead to tax avoidance. Several cases also occurred in Indonesia. This research was designed based on the results of a literature review. The aim is to find and assess three components that have the potential to influence tax avoidance. The methodology encompasses a systematic literature review of six articles from Sinta or Garuda indexed journals, all addressing the same topic and published within the past two years. The study's findings suggest that financial leverage, profitability, and the size of a company influence tax avoidance. The aim of this literature review is to deepen understanding and broaden viewpoints regarding the elements that can impact tax avoidance.

Constrained Maximization of the Economic Production Model of Lithium Ore Exploration in Nasarawa

Over 20,000 years ago, mining was discovered as one of the oldest production industries generating over US$700 billions’ of revenue in the world by a few mining companies. For some time, mining work has resulted in a very demanding affair as a result of greater depth, low-grade, limited resources, and complex geo-mining conditions. Therefore, optimization of the mining system plays a vital role in profit maximization with the satisfaction of many constraints. However, today’s mining industry uses complex and sophisticated systems whose reliability has become a critical issue. This work adopted the financial market theory of development to propose a maximized constrained optimization economic production model for lithium ore exploration in Nasarawa, Nigeria using three methods such as: the break-even principle method of cut-off grade between revenue earned and cost incurred; the mortimer’s method principle to determine ore based in two cut-off criteria (original and average good) and the lane method for net profit value thereby maximizing processing capacity. Data obtained from the field and the Ministry of Mines and Solid Minerals were analyzed using energy dispersive x-ray fluorescence (EDXRF) showing the presence of lithium. The froth flotation technique used showed the beneficiation thereby achieving improved lithium concentrates and the inductively coupled atomic emission revealed a high presence of lithium of over 1859 parts per million (ppm) and other minerals.

Integration and substitution in hybrid manufacturing and refurbishing systems

Inspired by a real-work case, this paper introduces a profit maximization model for dynamic lot sizing considering substitution and multiple usage of returns for refurbishing at different levels of quality or for disassembly to extract key parts that will be used in the manufacturing process. This model allows studying the interactions between different types of returns and decisions. To analyze the impact of uncertainty on these interactions, we develop a robust two-stage stochastic program with uncertainty on demands and returns. The resulting problems are mixed-integer linear programs that we solve using an efficient relax-and-fix and fix-and-optimize heuristic. Extensive numerical experiments are conducted to study the different trade-offs when integrating multi-usage of returns with substitution and accordingly derive managerial insights. The experiments have revealed, for example, that: (i) the profit margin of the refurbished items is the main determinant of the total profit and when such margin in high, the total profit becomes more sensitive to different cost variations; (ii) collection efficiency becomes very sensitive to collection cost and much less sensitive to refurbishing cost especially with large profit margins; (iii) when demand and returns are uncertain parameters, substitution becomes the best option as uncertainty and prices increase; (iv) when the gap between prices of different quality levels is high, lost sales occur mainly on the lowest quality product and downgrading decreases together with substitution; and (v) Sharing the production line between refurbishing and manufacturing for low-quality products is highly motivated by small upgrading costs and their substitution level increases with increasing upgrading costs.

RESEARCH OF MARKETING PRICING OF ENTERPRISE POLICY

Abstract. Introduction. The article examines the economic concept of «price», «marketing pricing policy» and its interpretation by various domestic and foreign scientists. The process of the marketing policy of the enterprise's pricing and the use of various concepts of pricing, the choice of which depends on the characteristics of the product or service and the marketing goals of the enterprise, have been studied. Research in relation to a marketing pricing of enterprise policy is actual, as it will allow to decide the row of urgent problems, in particular, establishment of optimal price on products, increase of volumes of sales, increase of level of satisfaction of consumers and other and is especially appropriate in the conditions of strengthening of competition and introduction of new technologies in economic activity. The purpose of the article. Research of essence, maintenance and role of marketing pricing policy. Aims that can be attained by means of effective pricing policy. Metods. During research the methods of comparison, analysis, synthesis, abstraction, theoretical, historical and logical generalization are used. The dialectical method of research became methodological basis. Results. The essence of the economic concept "price", "marketing pricing policy" is revealed. It has been studied that the marketing policy of pricing is an important component of the company's marketing strategy. Formation of prices for goods and services requires the company to carefully analyze the market, competitors, consumers and own costs, and the main goal of pricing is to achieve maximum profit for the company. Conclusiоns. The analysis of the theoretical and practical aspects of marketing pricing policy showed the place and role that pricing policy plays in achieving strategic goals and ensuring the sustainable development of the enterprise, analyzed the main approaches to pricing and identified a number of factors affecting the choice of pricing strategy. It has been studied that in the process of marketing pricing policy, enterprises can use various concepts of pricing, such as price elasticity, competitiveness, consumer orientation and others. The choice of the pricing concept should depend on the characteristics of the product or service, as well as on the marketing goals of the enterprise. Further research is seen appropriate to point at sound determination of marketing strategies of companies of different patterns of ownership.

Optimized intuitionistic fuzzy enriched honey badger algorithm for cloud network-based work load scheduling

The difficulty of scheduling jobs or workloads increases due to the stochastic and transient characteristics of the cloud network. As a key prerequisite for establishing QoS, it asserts that effective work scheduling must be developed and executed. Maximum profit is made possible for cloud service providers by proper resource management. The most effective scheduling algorithm considers resources given by providers rather than the task set that users have accumulated. This paper developed a model that works in a two-level hierarchical model comprising global scheduling and local schedules to handle the heterogeneous type of request in real-time. These two levels of scheduling communicate with each other to produce an optimal scheduling scheme. Initially, all the requests are passed to the global scheduler, whose task is to categorize the type of request and pass it to the corresponding queue for assigning it to the related local scheduler using a parabolic intuitionistic fuzzy scheduler. In this work, the heterogeneous types of files are handled by maintaining different queues, in which each queue handles only a specific type of file like text doc, audio, image and video. Once the type of req is initiated by the clients, the global scheduler identifies the type of request and passes it to their relevant queue. In the next level, the local scheduler is assigned to each type of web server cluster. Once the work request is dispatched from the global workload scheduler, it is allocated to the local queue of the local scheduler, which allocates the resources of web servers by adapting the Quantum Honey Badger Algorithm, which searches the best-suited server for completing the assigned work based on the available resource parameters.

A study on omnichannel retailers' return strategies considering showroom and consumer preference behavior

AbstractTo address omnichannel retailers' return challenges, considering consumers' brand and channel preferences. Four subgame models for retailers' Experience‐in‐Store‐and‐Buy‐Online (ESBO) return strategies in a double oligopoly market are developed. Using an optimization model and inverse induction method, equilibrium strategies under different conditions are determined. Finally, simulation analyzes parameter sensitivity and equilibrium strategies. Findings show that when consumers' brand preference is low, the (Y,Y) subgame is the unique equilibrium solution, but profits do not significantly increase and are always lower than the (N,N) subgame, leading to a Prisoner's Dilemma. With a clear brand preference, both retailers always obtain the maximum profit under the (Y,Y) subgame. In markets with a high proportion of omnichannel consumers and a large number of high‐cost‐to‐store consumers, the party implementing the ESBO strategy benefits more in a fiercely competitive market, while the profit situation of the party not implementing the ESBO strategy is less optimistic.

Financing a capital-constrained supply chain: Equity or debt

Many retailers are small and medium enterprises (SMEs) with limited access to capital to finance their operations. Here, we consider a supply chain consisting of a capital-constrained retailer and a manufacturer and examine the effect of equity and debt financing schemes on their operational decisions. Using a game theoretical approach, for the risk-neutral scenario, we take expected profit maximization as the participants’ objective to examine the equilibria of their operational and financing decisions. We also examine the condition under which the manufacturer and retailer adopt equity or debt financing to earn additional profits. We find that when the retailer is highly capital-constrained, she benefits from either financing scheme, but the manufacturer prefers to offer equity financing over debt financing. Otherwise, if the retailer is less constrained, debt financing is preferable. We also extend our analysis to risk-averse participants using the conditional value-at-risk (CVaR) criterion. We show that the decreasing monotone property of the order quantity in the wholesale price, known in the risk-neutral setting, no longer holds. Indeed, the relationship depends on the participants’ risk aversion level; if the manufacturer is highly risk-averse, it chooses to provide equity financing to enhance its CVaR performance; otherwise, it offers debt financing. Our findings provide implications for decision-makers in choosing the optimal financing options and making the associated operations and financing decisions when considering risk attitudes.

MAXIMUM PROFIT ANALYSIS USING LINEAR PROGRAMMING SIMPLEX METHOD AND POM-QM SOFTWARE AT UKM PIE BU SRI

In current conditions, many people are competing to set up businesses to meet their daily living needs. One of the various ways to improve people's welfare is through small and medium enterprises (SMEs). As many businesses develop and are accompanied by intense competition, many problems will arise and will affect the profits of SMEs. The problem that occurs at UKM Pie Bu Sri is the problem of calculating the optimum profit obtained every day from the production of its activities. The aim of this research is to help calculate the optimum profit for UKM Pie Bu Sri so that it can be done accurately and quickly. In order to achieve this goal, the Simplex Linear Programming Method and QM for Windows Software were used to find the optimum profit estimate obtained in each production activity carried out by UKM Pie Bu Sri within a period of one day. The results of the maximization calculations show that in order to achieve maximum profits, Mrs. Sri must make 60 Brownie Pies and produce 25 Fruit Pies with a profit of IDR 99,500 per day.

Sanksi Publisitas Dalam Bentuk Pidana Pengumuman Putusan Pengadilan Terhadap Korporasi Pelaku Perdagangan Orang

Indonesia ratified the Law Number 21 of 2007 on the Eradication of Criminal Acts of Trafficking in Persons (UUPTPPO) which contains comprehensive regulations that expand the scope of perpetrators by including corporations. Fine penalty only has a financial impact and is considered as business loss for corporations. In addition, the additional penalties provided for by the law do not have much impact on corporations as they can still operate without a license. The trend of corporations to seek maximum profit, coupled with the lack of knowledge of victims about the modes of human trafficking crimes, makes it necessary to impose additional penalties such as the announcement of the court's decision. This study aims to explain the urgency of the announcement of the court's decision as an additional penalty and to provide ideas for its implementation scheme. The research results show that the announcement of the court's decision is a formal publicity sanction that has never been applied in Indonesia. As input to fill the legal vacuum, limited formal publicity sanction mechanisms can be used as a reference for implementation. Through such a mechanism, the announcement of the court's decision is aimed at lowering the reputation and inducing government intervention.

Strategic trading equilibria in local community considering co-existence of pool-based and peer-to-peer energy markets with free-rider problem in network usage cost

The peer-to-peer (P2P) energy trading market is considered a promising method for allocating prosumers’ locally produced power in smart buildings. However, the existing literature overlooks the coexistence of P2P and pool-based energy markets. Therefore, this paper establishes a bi-level energy market model that incorporates both P2P and pool-based markets. The prosumers’ individual profit maximization model considering their network usage costs in the P2P energy trading network at the upper level is first developed. A hybrid market-clearing framework determining the optimal trading amounts with the prosumers’ strategic offers at the lower level is then exploited. The distribution network power flow model in the market clearing framework is then convexified. The lower-level problem is replaced with its strong duality conditions. This bi-level problem can be reformulated as an equilibrium problem with equilibrium constraints (EPEC). This EPEC is then solved after being transformed into an equivalent mixed integer linear programming (MILP) model. Finally, a fifteen-bus system is employed to illustrate the characteristics of the hybrid market equilibrium depicted by this EPEC model. The influences of the prosumers’ strategic offers on the distribution locational marginal prices (DLMPs) and network usage costs are highlighted. Since the prosumers can choose to transmit their energy in the pool-based or P2P markets, the emission and pollution costs caused by power transmission can be minimized. A cleaner energy production is thus guaranteed. The free-rider problem is verified by comparing the network usage charges in the strategic and perfect competition scenarios.

Analisis Biaya Produksi Dalam Penganggaran UMKM Bakso Zaky Di Pancur Batu

The Bakso Zaky stall business located in Deli Serdang district, North Sumatra has been established since 2019. Mr. Zaky started his business with capital of IDR 12,500,000. The location of this business stall is very strategic because it is on the edge of the market and many people pass by it. This research method is a qualitative and secondary method, namely research that uses short-term time or with supporting data and qualitatively by conducting direct interviews with sources. The subject of this research is a meatball trader named Zaky Darius who is 31 years old. The research results obtained were that the maximum profit from chicken noodles was IDR 842,000, regular meatballs IDR 1,154,000, and large meatballs IDR 920,000, so that within a week Zaky's Bakso business experienced a net profit/profit of IDR 2,916,000.

The flexible reverse approach for decomposing economic inefficiency: With an application to Taiwanese banks

Profit inefficiency is conventionally decomposed into two mutually exclusive components representing profit loss due to technical inefficiency, and, through duality theory, a residual interpreted as allocative inefficiency. Although conventional models solve technical inefficiencies by reducing inputs and increasing outputs, achieving profit efficiency may require larger than observed input quantities and/or smaller than observed output quantities. However, overcoming the restrictions in the direction of the technical adjustments in input and output quantities demands flexibility that existing models do not offer. Thus, to achieve this flexibility, we introduce an endogenous profit inefficiency measure that reverses the subordinate role played by allocative inefficiency. The new measure is based on a monetized version of the weighted additive model seeking maximum feasible profit gains without restricting inputs and output adjustments. This prevents the conflicting prescriptions that the conventional model may offer in the form of non-monotonic input and output changes, thereby reducing adjustment costs. We apply the proposed model to real data from financial institutions. The differences in the managerial and policy recommendations for optimal resource allocation are relevant, with the conventional model wrongly recommending reductions in inputs in terms of the amounts and scale required to maximize profit.

Analisis Penerapan Neuroekonomi dalam Pengambilan Keputusan Transaksi dan Investasi pada Mahasiswa Pendidikan Ekonomi Universitas Mulawarman

Transaction and investment decision making in students is often influenced by irrational and emotional factors. This can result in suboptimal and risky decisions, which can have negative financial repercussions in the future. The purpose of this study is to find out how the application of neuroeconomics in making transaction and investment decisions of Mulawarman University Economic Education students. This research is a descriptive research with a qualitative approach. Data collection using interviews and observations. Data analysis used is data reduction, data presentation, and verification/conclusions. The informants of this study were 6 students of Economic Education at Mulawarman University. The results of this study show that Mulawarman University Economic Education students apply neuroeconomics in making transaction and investment decisions, students gain knowledge about products by searching for information. Students consider emotional responses to purchasing decisions as well as satisfaction. Investment decisions made by students for the long term and get maximum profit. Different types of investments are compared to choose the type of investment that suits personal finance.

Economic efficiency of small-scale wheat production in Jigawa state, Nigeria

Africa’s most populous country has failed to grow more food for its fast-rising population. With 420,000 metric tons of wheat produced in Nigeria in 2020, the country is still far from bridging its 4.6 million metric tons annual wheat gap. Increasing wheat production is a challenge for the nation to fulfill the food requirements of its growing population. So far literature has shown a rise in research on wheat in different parts of Nigeria, with a paucity of information on the economic efficiency of wheat production in the study area, and the country in general. To bridge these knowledge and empirical gaps, this research investigates the economic efficiency of wheat production in Jigawa State of Nigeria using information gathered from a survey elicited by a well-structured questionnaire coupled with an interview schedule from 341 active wheat farmers selected through a multi-stage sampling technique. Both descriptive and inferential statistics were used to analyze the data collected. Empirically, despite the wheat enterprise being profitable in the study area, farmers didn’t achieve the targeted goals of output maximization, cost minimization, and profit maximization as evident respectively by the technical, cost, and economic efficiency indexes. However, these goals were challenged by induced human risks viz. gender discrimination that affects women’s access to productive resources, poor labor productivity due to diminishing marginal returns associated with old age, capital consumption triggered by increased income, poor prioritization of wheat enterprise as a business, and vulnerable household size. Furthermore, the identified constraints mediating the links that affected the economic efficiency of wheat farmers were price/marketing, technological, managerial, and infrastructural risks. Therefore, for long-run sustainable wheat production, the responsibility lies on policymakers to concentrate more on marketing and technological risks challenging wheat production in the study area as empirically established by this research.

Legal and Policy Implications in the Age of Social Media in South Africa

Purpose: The aim of the study was to examine the legal and policy implications in the age of social media in South Africa Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The study revealed that privacy concerns, copyright infringement, cyberbullying, data protection regulations, content moderation, online political advertising, employer surveillance, and emerging technologies like deepfake, researchers have shed light on the evolving legal frameworks governing social media platforms. The study emphasized the critical need for enhanced privacy protection measures, transparent content moderation policies, comprehensive cyberbullying laws, and stricter regulation of online activities to safeguard users' rights and mitigate potential harms. Unique Contribution to Theory, Practice and Policy: Social Contract Theory, Diffusion of Innovations Theory & Network Society Theory may be used to anchor future studies on legal and policy implications in the age of social media in South Africa. Formulate policies that strike a balance between freedom of expression and the need to curb harmful content such as hate speech, misinformation, and online harassment. Legal frameworks should provide guidance on content moderation practices while safeguarding fundamental rights. Encourage social media companies to adopt ethical principles and practices that prioritize user well-being and societal good over profit maximization. This includes measures to combat online addiction, promote digital well-being, and mitigate the negative impacts of their platforms on mental health and democracy. This contributes to both legal theory and practice by emphasizing the role of corporations in upholding broader societal values.

Costs versus revenues of flexibility enhancement techniques for thermal power units in electricity-carbon joint markets

Thermal power units (TPUs) are required to enhance operational flexibility to ensure power grids accommodate the increasing penetration of intermittent renewables. The flexibility enhancement includes increasing peak shaving depth, increasing ramp rate, or both. In electricity-carbon joint markets, increasing peak shaving depth means TPUs can generate less electricity during low-tariff periods while increasing ramp rate means TPUs can respond faster to changes in electricity tariffs. Flexibility enhancement brings additional revenues, but also additional investments. The tradeoff between costs and revenues is important for the construction of sustainable power systems mainly based on renewables, but limited literature models them. To address this gap, variable costs, fixed costs, revenues, and an optimization model for maximum profits are proposed and modeled. Then the economic applicability of different flexibility enhancement aspects is evaluated by comparing the maximum profit increase for a day before and after the flexibility enhancement of TPUs. Furthermore, the profitability of applying different flexibility technologies under the same investments is analyzed, obtaining the optimal flexibility enhancement route. The proposed method is applied to TPUs with different live steam parameters, installed capacities, and reheat stages. Numerical simulations provide detailed economic analysis and optimal flexibility enhancement routes for TPUs in electricity-carbon joint markets.

Mengukur Efektivitas Corporate Social Responsibility (CSR) dalam Menciptakan Nilai Perusahaan pada Industri Tekstil di Indonesia

Corporate Social Responsibility (CSR) has become a hot topic in the business world today. However, there is still debate regarding the influence of CSR on company value. Textile companies are a sector that has a big impact on the environment and surrounding communities. Therefore, social responsibility is a very important issue for textile companies. The aim of this research is to determine the influence of CSR on company value in textile companies listed on the Indonesia Stock Exchange for the 2018-2022 period. This research method uses descriptive and quantitative research methods. The population in this study were 14 textile companies. Researchers used the purposive sampling method for sampling. Data analysis and hypothesis testing using SPSS version 26. An investor is expected to be able to consider everything when making an investment, including how the company manages funds, especially investor funds, to generate maximum profits. As well as how the company expresses its social responsibility both to society and the environment regarding the impact of its operational activities. So that the natural environment and everything in it can still be maintained and used sustainably.

Specific features of forming the socio-economic development strategy of a modern enterprise

Methods. During the research, the following methods of scientific research were used: abstraction – when determining the essence of the socio-economic development of an enterprise; comparison – when comparing the factors of economic and social development of an enterprise; systems approach – when forming the principles of the socio-economic business development model; logic – when developing an algorithm for implementing the main elements of the model into the strategy of socio-economic development of modern enterprises. Results. The essence of the socio-economic development of an enterprise is characterized. It has been demonstrated that in order to ensure the effective operation of any enterprise, the process of developing a strategy for its socio-economic development, which combines economic and social components, is important. Such a combination allows the enterprise to achieve higher competitiveness, which is formed due to both material factors (cost reduction, profit maximization) and the influence of intangible components - reputation, customer loyalty, trust. The desire of the management of a vast majority of Ukrainian enterprises to plan their activities in order to avoid risks and threats from the external environment, as well as the formation of adaptive business stability, has been revealed. The work shows the limitations of such an approach and actualizes attention to the importance of improving the level of qualification (special knowledge, skills and abilities) of the management personnel of an organization, directly responsible for the strategic direction of its functioning and development. Novelty. The principles of building a model of socio-economic development of business are singled out and an algorithm for implementing its main elements into the strategy of socioeconomic development of modern enterprises is proposed. Practical value. The principles of building a model of socio-economic development of business are pointed out: the economic situation of an enterprise, the level of its social development, innovativeness; the number of employees who have undergone advanced training; the rate of growth (or decrease) in the volume of product sales; profitability (loss) dynamics; implementation of the principles of corporate social responsibility; a set of alternatives for the parallel implementation of strategies for economic and social development of the enterprise; the goals for improving the socio-economic development of the enterprise are defined; criteria for choosing the best solution are established; the usefulness (efficiency) of the implementation of possible alternatives will allow enterprises to have reliable guidelines in their activities and to develop effective strategies for the future.