Model of the production factors of an enterprise as a production function
Abstract
Subject. The model of production processes makes it possible to plan the activities of an enterprise based on the availability of production factors and resources. The results of the model can be integrated into the financial model of the enterprise and become part of the financial and production planning process.
Objectives. We proposed an approach to building the model of the production function based on the use of the basic factors of production: labour and capital.
Methodology. The classical representation of the generalised production function was adapted to a specific production process. The main control parameters were the fixedasset turnover ratio, capitallabour ratio, and labour productivity. A numerical example of the model was provided.
Conclusions. The use of the production function allowed us to describe in detail the internal processes of the enterprise in an accurate and methodologically correct manner. The results of the production model can be integrated into the financial model of the enterprise.
Metrics
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