Open AccessMAXIMIZING THE PROFITABILITY ON INVESTMENT BY OPTIMIZING THE PRODUCTION PROGRAM
Author(s) -
Jaroslava Kádárová,
Jaroslava Janeková,
Daniela Onofrejová
Publication year - 2021
Publication title -
mm science journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.195
H-Index - 10
eISSN - 1805-0476
pISSN - 1803-1269
DOI - 10.17973/mmsj.2021_10_2021035
Subject(s) - profitability index , production (economics) , investment (military) , return on investment , market liquidity , business , order (exchange) , investment decisions , industrial organization , finance , economics , microeconomics , politics , political science , law
Investments in tangible fixed assets significantly affect the future production capacity of the company, they are a stimulator of the company's development. At the same time, they are associated with a degree of uncertainty that needs to be taken into account when making investment decisions. The article presents an approach to optimizing inhomogeneous production in order to maximize the economic efficiency of a particular business investment. The economic efficiency of the investment is assessed comprehensively in terms of profitability, liquidity and risk. The risk is addressed through Monte Carlo simulation and the production program is optimized using OptQuest. The result is a production program that maximizes the return on the assessed corporate investment.