Economies Of Scale In Production Research Articles

Effects of Government Incentives on Sales Growth of Selected Industrial Firms in South- East, Nigeria

The study focused on the effects of government incentives on sales growth of selected industrial firms in South-East, Nigeria. The objective of the study was to examine the effect of government incentives on sales growth of selected industrial firms in South-East, Nigeria: The significant effect of government incentives on sales growth of selected industrial firms in south east, Nigeria will require management of industrial firms to focus on most lucrative and productive government incentives to improve on their marketing performance. Incentives help firms generate economies of scale in production and they can manage to sell excess domestic capacity with government formulated policies and support with institutional knowledge transfer to facilitate SMEs to industrial development in South East Nigeria. Improved marketing performance of industrial firms in south east, Nigeria will also improve the contribution of industrial firms sector to the gross domestic product of the economy. This will also imply increased tax payment by the firms to government, which will in turn make revenue available for societal development. The study adopted survey research design The population of the study was 12100 selected industrial firms in South-East, Nigeria. A sample size of 387 (Three hundred and eighty-seven) was drawn from the population using Taro yamani statistical formula. One hypothesis was formulated and tested with Simple Linear Regression model.. The major findings in the study showed that: there is a significant effect of government incentive on sales growth of selected industrial firms in South-East, Nigeria; This study has formed a body of knowledge (reference material) which has closed the gap identified in literature and which can also be cited by both present and potential researchers. Results of the study provided direction for management of industrial firms with respect to which government incentive to adopt in order to improve on marketing performance as well as where and how to direct available resources.. Hence, we concluded that successful investments in R&D result in innovative products and services that enable the company to improve its sales revenue. It implies that government subsidies can serve as effective catalyst that can boost the overall productivity of firms located within south east, thereby increasing their sales revenue and also their competitiveness We, therefore, recommended that firms in the south east zone should upgrade their activities relating to cost efficiency, quality, variety/diversification, responsiveness, acceptance of entrepreneurial risks, and a positive attitude towards change and innovation as prerequisites for surviving in a globalized market.

Analysis of the performance of financial and economic activities of national oil and gas enterprises (on the example of Uzbekneftegaz JSC)

Currently, in the Republic of Uzbekistan, unlike the economies of a number of border countries, such as Tajikistan, the Kyrgyz Republic, the oil and gas industry, which includes enterprises engaged in the production of hydrocarbons, their processing at various levels, supply and sale to consumers, is one of the leading sectors of the country’s economy. To support the oil and gas industry in organizing the extraction and production of goods with high added value, it is necessary to create long trade and production chains for advanced processing of raw materials, the formation of large production associations that make it possible to benefit from economies of scale in production. In this article, the contribution of the oil and gas complex industry to the country's economy, the areas of activity are considered on the example of the joint-stock company «Uzbekneftgaz», which is the leader in the field. The position of society in the market and the existing risks in financial and economic activity are considered on the basis of SWOT analysis. We conducted a small analysis of the current situation in the oil and gas market, assessed the activities of one of the leading national companies in the region and the indicators of its development. In our opinion, this analysis allows us to see the development and improvement of companies from a development point of view. Keywords: environmental; SWOT analysis; liquidity; investments; net profit; expenses; rating agencies; hydrocarbon reserves.

Fuel cell system production cost modeling and analysis

Fuel cell technology is seen as a promising option for decarbonizing global mobility. The costs of fuel cell systems are currently too high for increasing market penetration. The Chair of Production Engineering of E-Mobility Components at RWTH Aachen University has developed a cost calculation model for Polymer Electrolyte Membrane (PEM) fuel cell systems based on the method of Process Based Cost Modeling (PBCM) and is investigating possibilities for reducing manufacturing costs through economies of scale in production. The aim of this publication is therefore to present the results of cost modeling of PEM fuel cell systems and to derive design areas for technical innovations in terms of cost reduction through economies of scale in production. To this end, technical production parameters with the greatest influence on the cost structure of PEM fuel cell systems are identified and ranked by applying a sensitivity analysis. Finally, this work provides a recommendation for strategic investments and formulates the need for further research to reduce PEM fuel cell system costs by economies of scale.

Hilir Ization And Marketing Of The Main Export Commodity Of Pulp

The aims of this paper are 1) to map the production of upstream and downstream pulp commodities. 2) knowing the potential and impact of downstreaming on regional and national economic growth. 3) formulate a recommendation for the development strategy of the main commodity downstream. The data used is secondary data, namely Riau Province Input-Output data in 2016 with a 52 x 52 matrix. Data obtained from the Central Statistics Agency (BPS). The analytical method used isAnalysis (IO) ofbackward linkage and forward linkagefrom the rubber plantation sector as a provider of inputs and users of inputs as well as the impact on the economy in Riau Province. The results showed thatProduction from upstream to downstream of pulp commodities can be divided into several industries, including the forestry and logging sector, the textile industry sector, the paper industry sector or paper goods, printing, and recording media reproduction. The sector with the most potential and impact on economic growth from downstreaming of pulp commodities is the paper and paper goods industry, printing, and recording media reproduction. Strategies that can be taken to develop the paper and paper goods industry, printing, and reproduction of recording media are increasing economies of scale in production, determining appropriate market segments, increasing product value (increasing value), and maintaining economic stability.

Two-Level Capacitated Discrete Location with Concave Costs

In this paper, we study a general class of two-level capacitated discrete location problems with concave costs. The concavity arises from the economies of scale in production, inventory, or handling at the facilities and from the consolidation of flows for transportation and transshipment on the links connecting the facilities. Given the discrete nature of the problem, it is naturally formulated as a mixed-integer nonlinear program that uses binary variables for locational decisions and continuous variables for routing flows. We present an alternative formulation that only uses continuous variables and discontinuous functions, resulting in a nonlinear program with a concave objective function. Our main goal is to computationally compare these two modeling approaches under the same solution framework. In particular, we present an exact branch-and-bound algorithm that uses (integer) linear relaxations of the proposed formulations to optimally solve large-scale instances. The algorithm is enhanced with a cost-dependent spatial branching strategy and preprocessing step to improve its convergence. Extensive computational experiments are performed to assess the performance of the exact algorithm. Based on real location data from 3,109 counties in the contiguous United States, we also present a sensitivity analysis to showcase the impact of considering concave costs in location and assignment decisions.

Effect of Culture Period and Stocking Density on Input Demand and Scale Economies of Milkfish (Chanos chanos) Polycultures with White Shrimp (Penaeus indicus)

Milkfish, Chanos chanos, is one of the major inland cultured fish species in Taiwan. Variations in land resources and climate have led to the application of two distinct culture practices of milkfish polycultures with white shrimp, Penaeus indicus. This study applies a translog cost function model to analyze the production scale economy and input demand price elasticity of four milkfish polyculture systems with two different culture periods (OWC and NOWC) and two different white shrimp–milkfish fry stocking ratios (low SMR: 10–55 fry/ha; high SMR: 56–100 fry/ha). The findings show that the four milkfish polyculture systems require different operational adjustments to increase production while reducing the average culture cost. More specifically, overwinter cultures (OWC) have economies of scale. Farmers may reduce the average cost by expanding the production scale. Non-overwinter polycultures (NOWC) with high SMR are at the stage of decreasing return to scale, meaning that gains in output of milkfish cannot reduce the average cost. In terms of input factor use, farmers of OWC systems with high SMR are sensitive to fluctuations in the fry price since fry constitutes the input factor exhibiting the highest own-price elasticity. Moreover, fry and feed of OWC households with high SMR have high levels of substitutability, whereas fry and other input exhibit substitutability in OWC systems with low SMR. In NOWC farming households with high SMR, fry and capital have substitutability. It is thus recommended to modify the input factor use according to the culture mode and the white shrimp–milkfish stocking density ratio. Moreover, the study found that NOWCs have considerably higher SMR than OWCs, which may lead to a deterioration of the water quality in NOWC fishponds and lower survival rates. It is thus recommended to reduce the SMR to 31:1 to achieve economies of scale in production and increase the survival rate of milkfish and white shrimp.

Connecting Smallholding Farmers: Analysis of Agricultural Market Information Systems (The Case of Wondogenet Wereda, SNNPR, Ethiopia)

The study aimed to identify the major challenges that affect the market information system, assess the possible mechanism that would increase their speculative and bargaining capacity power and to explore feasible information system solutions. Data were collected with structured questionnaire from104 farmers of different market using clustered sampling techniques. Descriptive research design and mixed (qualitative and quantitative) research approach vis-à-vis value chain approach is applied and developed an intermediary driven value chain model that links farmers to the market as a way to improve the unidirectional, selectively beneficiary traditional system. Using nine criteria on the multitude of alternative information delivery mechanisms for small holding farmers, Interactive Voice Response based system is found to be of highly effective. Restructuring the market information by bringing the most important wholesalers in to the system, enhancing the functionalities of the market by creating localized price data and creating demand forecasting platform by distinguishing crops that continuously face marketing problems are suggested as short-term action while, increasing economies of scale in production and distribution by consolidating farmers’ cooperatives, encouraging the development of third-party logistics, investing on the physical agro-logistics infrastructure to support long-distance, high-volume agricultural product transportation modes as well as increasing the refrigerated storage capacity at wholesale markets to nurture cold chain technologies are very crucial tasks in the long run.

Contract farming problems and games under yield uncertainty

This study investigates whether a group of independent agricultural producers willingly forms a coalition to jointly cope with yield uncertainty in contract farming. The agricultural producers’ cooperative game problem in contract farming is formulated as a two‐stage stochastic linear program. Using the strong duality theory of stochastic linear programs, we not only prove that the core of agricultural producers’ cooperative game is nonempty but also provide a simple way to compute a profit allocation policy in the core. We establish the convexity of agricultural producers’ cooperative game so that the game has population monotonicity, which gives agricultural producers an incentive to expand their current coalition. We then analyze the agricultural producers’ cooperative game with a concave cost structure, which may exhibit economies of scale for production. Taking advantage of the proposed stochastic duality approach, the agricultural producers’ cooperative game with a concave cost structure is also shown to have a nonempty core.

Da li je struktura izvoza uticala na ekonomski rast zemalja Evropske Unije u Centralnoj i Istočnoj Evropi?

This study analyzes export composition effects on economic growth in the European Union (EU) countries of Central and Eastern Europe (CEE) during 1999-2016. The results confirm that the fuel and food exports have boosted growth after EU accession. As expected, agricultural exports have no effect on growth. Due to the different comparative advantages, the CEE countries have still relied on some raw material exports while developing manufactured exports. The results also indicate that the transportation equipment, textile, steel, and chemical exports have accelerated growth. This can be attributed to the economies of scale in production, given their greater access to EU markets.

Удаленная малая экономика: теоретические основания и эмпирические наблюдения

Начиная с 1990-х гг. в экономической литературе не ослабевает внимание к теме влияния географического фактора на экономическую динамику и, отсюда, межстрановое и межрегиональное неравенство. Проблемы изолированных удаленных регионов внутри страны актуальны для стран, отличающихся размером территории и разнообразием природных условий, таких как Россия, Канада, Австралия, США. Исследования в области «экономики изоляции и удаленности», выполненные на материале стран мира, привели к созданию концепций и подходов, применимых и к уровню региона, в той мере, в какой регион можно рассматривать как аналог национальной экономики. Статья посвящена анализу теоретических обоснований эффектов удаленности и результатов их эмпирических проверок. Обсуждаемые эффекты иллюстрируются на примере четырех удаленных республик России: Алтая, Тувы, Бурятии и Хакасии.Обзор дискуссии на тему «смерть расстояния» показал, что роль последнего в формировании пространственной структуры экономики не снижается, несмотря на развитие технологий транспортировки и телекоммуникаций. Микроэкономический анализ обнаруживает, что в основе поведения фирмы при выборе места размещения производства лежит взаимодействие транспортных затрат и типа экономии от масштаба. На макроэкономическом уровне эти фундаментальные факторы определяют, как влияют параметры удаленности и размера национальной или региональной экономики на показатели производства и благосостояния. В зависимости от соотношения возможны разнонаправленные эффекты: в общем случае удаленность экономики снижает эффективность производства, уменьшает конкуренцию и затрудняет распространение инноваций, в то время как растущий размер локального рынка позволяет достигать эффектов масштаба в производстве. Поэтому в удаленных регионах возникает специфическая отраслевая структура экономики, для которой характерны ограниченное число отраслей специализации и гипертрофированная доля государственного сектора из-за трудностей доставки общественных благ.Основные рекомендации в области региональной политики для преодоления замкнутости удаленных регионов сводятся к поощрению развития инфраструктуры, поддержки локального спроса и развития человеческого капитала, но их потенциальный положительный эффект ограничен структурными особенностями местных экономик, а долгосрочные последствия повышения транспортной доступности снижают защитный эффект удаленности.

Doing good while doing business: Using financial viability to enhance employability for the disadvantaged

The employment social enterprise (ESE) model can provide an opportunity to create a financially viable business that helps individuals with employment barriers become integrated into the labor force. This research studied eight ESEs. Findings suggest that by applying private‐sector business principles to a workforce development programs, social enterprises can provide participants with meaningful and valuable work experience, while offsetting program costs. Analysis identified four promising practices that social entrepreneurs should adopt when setting up a new enterprise. Enterprises should (a) provide soft‐skill training and social services to participants; (b) operate at a size that allows for economies of scale in production and the provision of support services; (c) have few occupational skill requirements; and (d) hire supervisors with both industry knowledge and the capacity to support individuals with employment barriers.

Competitiveness Through the Integration of Logistics Activities in SMEs

Abstract Logistics among competing organisations is a strategic management activity that can affect the operational, market and financial performance of an organisation. Small and medium enterprises (SMEs) need to understand the role of logistics activities in achieving competitive performance and creating a high level of customer satisfaction through greater economies of scale in production and reduction in the price of goods. This study aims to determine the nature and extent of SMEs competitiveness through logistics activities. This research used a quantitative method of data collection and analysis. The data were statistically analysed using SPSS (25.0) as well as SMART-PLS (3.0) software for structural equation modelling (SEM) to assess the measurement reliability and the research structural model. The findings show that SMEs nature and extent of competitiveness based on logistics activities differs among the three measurement constructs, namely price/cost competitiveness, quality competitiveness and delivery competitiveness. This study adds value to the knowledge of the perceived benefits and importance of logistics activities among the participating SMEs.

Failure Modes, Mechanisms, Effects, and Criticality Analysis of Ceramic Anodes of Solid Oxide Fuel Cells

Solid oxide fuel cells (SOFCs) are a highly efficient chemical to electrical energy conversion devices that have potential in a global energy strategy. The wide adoption of SOFCs is currently limited by cost and concerns about cell durability. Improved understanding of their degradation modes and mechanisms combined with reduction–oxidation stable anodes via all-ceramic-anode cell technology are expected to lead to durability improvements, while economies of scale for production will mitigate cost of commercialization. This paper presents an Ishikawa analysis and a failure modes, mechanisms, effects, and criticality analysis (FMMECA) for all-ceramic anode based SOFCs. FMMECA takes into account the life cycle conditions, multiple failure mechanisms, and their potential effects on fuel-cell health and safety.

Profitability and marketing behavior of cauliflower crop in Sonipat district of Haryana

India is the second largest producer of vegetables in the world next to China. The cauliflower, potato, onion, tomato and radish are the major vegetable crops of Haryana. The present investigation was carried out to study the cost structure, returns, resource use efficiency, price spread and marketing efficiency of cauliflower. Present study was conducted in Sonipat district of Haryana. From selected district one tehsil and two villages from tehsil were selected on the basis of highest area and 15 farmers from each selected village were interviewed. Thus, sample of30 cauliflower growers were studied. The vegetable markets of  Sonipat district was purposively selected as these are near to the main production area. While, Sonipat and Panipat markets were selected for the marketing efficiency. Ten intermediaries from each market were selected randomly making a sample of 20 intermediaries. The cost of cultivation of cauliflower was higher on large farms as compared to medium and small farms.The gross returns were found higher in medium farms as compared to large and small farms. The cost of production per quintal was lower onmedium farms and highest on large and small farms indicating that the medium farms are having economies of scale in production. The net income was higher on medium farms as compared to small and large farms in cauliflower.There was no difference in marketable and marketed surplus because of perishable nature of vegetable and farmers were hard pressed by their cash needs for post-harvest immediate sale. In cauliflower channel-I (Producer → Commission agent cum wholesaler →Retailer →Consumer) was more efficient as it ensured higher percent share of farmer in the consumer's rupee as compared to channel-II (Producer → Village trader → Commission agent cum wholesaler→Retailer →Consumer).

Cooperative Procurement in Building National Defence: Why Are There So Few?

The economic benefits of cooperative procurement derive from, at minimum, increased bargaining power relative to contractors and from economies of scale in production. There is, however, a puzzle: why is this kind of procurement so rare? This paper introduces a bargaining model with forward-looking expectations about the scale of procurement. It is shown that the price sensitivity of the scale of acquisition is favourable for the buying partnership, as it tends to push down the bargaining price. We propose several explanations for why it is hard to align buyers’ incentives: First, preferences for the properties of the products are country-specific, with divergent implications for national security. Second, countries that place a low value on the product have more bargaining power than those that value it highly, and may require a side payment in order to enter a partnership, while the partner may not have sufficient incentives to make such a payment. Third, the gains from cooperative procurement for the producer may not be sufficient to compensate for conflicting preferences among contractors. Fourth, while the future unpredictability of technologies or the future risks of deteriorating national security might support longer-term cooperative procurement, short-term opportunism tends to prevent long-term commitments.

Financial vulnerability and export dynamics

AbstractThis paper examines the implication of financial shocks on firms’ export dynamics in developing economies. To address this question, we use the Exporter Dynamics Dataset, which contains new data on the microstructure of exports for 34 developing countries between 1997 and 2011, and investigate how exporter behaviour is affected by financial crises. We find that financial crises in both the origin and destination countries have a large negative effect on firm, product and destination dynamics, particularly in industries dependent on external finance. Financial crises make the costs of exporting more difficult to meet and in turn reduce firms’ ability to start exporting, introduce new products and sell to new destinations. We also find that the impact of financial crises is less pronounced in exporting countries with relatively more open capital accounts, suggesting that portfolio inflows may be a good substitute for underdeveloped domestic financial markets.

Economic analysis of tariff integration in public transport

In this paper, we examine the effects of integrating the tariffs of public transport operated by various institutions on the welfare of economy based on a simple model with users and operators of public transport. Special attention is paid to two benefits of tariff integration; the removal or alleviation of a distortion in consumers’ choices, which arises when a shorter route costs more, and the economies of scale in production.

Product variety, sourcing complexity, and the bottleneck of coordination

Research summary: This paper studies the coordination burden for firms that pursue variety as their main product strategy. We propose that product variety magnifies the tension between scale economies in production and scope economies in distribution, giving rise to complex sourcing relationships. Sourcing complexity worsens performance and poses a dilemma for organization design: A hierarchical structure with intermediate coordinating units such as sourcing hubs reduces sourcing complexity for downstream distribution but creates bottlenecks at the hubs, hurting performance for both the hubs and downstream distribution. We empirically examine operations data for about 300 distribution centers within a major soft drink bottling company in 2010–2011. Results support our hypotheses, illuminating the source of complexity in multi‐product firms and the challenge for organization design in managing complexity.Managerial summary: This paper uses data for about 300 distribution centers within a major soft drink bottling company to study how a large product variety creates complex sourcing networks. We find that, in addition to poor performance (e.g., increased stockouts), complex sourcing networks can cause challenges for organization design. In particular, the benefits of converting an existing distribution center into a sourcing hub (i.e., reduction in sourcing complexity for downstream distribution) and the costs of doing so (i.e., reduction in performance for both the hubs and downstream distribution) are both real and significant. The design of an efficient sourcing network despite its complexity involves important managerial decisions. Experiences in building and managing such networks can be the basis of a dynamic capability. © 2016 The Authors. Strategic Management Journal published by John Wiley & Sons Ltd.

The effectiveness of contract farming for raising income of smallholder farmers in low‐ and middle‐income countries: a systematic review

The effectiveness of contract farming for raising income of smallholder farmers in low‐ and middle‐income countries: a systematic review

ТУРИСТИЧНИЙ КЛАСТЕР «ТЕТЕРІВ» НА ЖИТОМИРЩИНІ ЯК ОБ’ЄКТ ГЕОПЛАНУВАННЯ

A memorandum on the establishment of the Tourist Cluster «Teteriv» in the Zhytomyr Region was signed in 2019. The geoplanning of Teteriv Tourist Cluster is the first major aim of this article. It demonstrates the importance of identifying cluster with significant potential. The article is devoted to the systematizing the conditions and factors of Tourist Cluster "Teteriv". This article shows how the need for cluster policy can be assessed and how it is affected by the different characteristics and success factors of cluster. This article helps to understand what distinguishes a cluster from a random collection of organisations and competencies. In contrast to traditional, the cluster approach integrates different policies aiming at maximising the positive of tourism clusters. The objective of this approach is a strategic, holistic and sustainable investment of funds to secure prosperity, competitiveness and innovativeness of the region. Cluster has formed around specific recreational and tourist resources. Today, the determinants of successful cluster development can be influenced by policy to a substantial degree. Benefits for companies: рroximity to markets, the presence of input and equipment suppliers, supplies of specialised labour, the availability of infrastructure, the economies of scale in production, low transaction costs, superior access to information institutional support. benefits for regions: better regional organisation capacity, increased attractiveness of the regional labour market, strengthening regional key sectors, improved business environment, better assets in locational competition, attracting foreign direct investment. The practice of tourism business shows that it is in the conditions of the development of enterprises cluster systems that will be able to form unique competencies, optimally use the resource potential and strategic opportunities, and obtain synergistic and multiplicative economic benefits. Finally, article provides an overview on the measures for cluster development according to the nature and needs of cluster. Cluster policies can trigger positive developments but they do also inherit risks. The system of strengths and weaknesses, opportunities and threats to the development of the Tourist Cluster "Teteriv" is formed as a result of the application of SWOT- analysis.