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Enige ervaringen met economisch‐technische bedrijfsmodellen
Author(s) -
Ek J. L. P. van,
Tilanu C. B.
Publication year - 1973
Publication title -
statistica neerlandica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.52
H-Index - 39
eISSN - 1467-9574
pISSN - 0039-0402
DOI - 10.1111/j.1467-9574.1973.tb00211.x
Subject(s) - raw material , profit (economics) , production (economics) , economics , yield (engineering) , final product , econometrics , mathematics , microeconomics , chemistry , physics , thermodynamics , organic chemistry
Summary The raw material entering a factory at one end passes through 7 successive production stages; at the fifth stage a second raw material is added, and at each of the 7 stages a certain fraction of the material being processed has to be scrapped. Equations are developed for the yield and for the economic profit of this production process taking into account the production capacities of the various stages, the production costs, the cost of the raw materials, and the prices obtained for the final product and for the scrapped material. From these equations expressions for the elasticities are derived giving the relative changes in profit resulting from small relative changes in the influencing factors. Likewise an expression is developed for the overall operating efficiency of the production process. The use of the formulae is illustrated by a numerical example, for which the rigidities, that is the efforts required in order to increase the profit by a fixed amount through changes in the influencing factors, are also estimated.