Open AccessUsage of Production Function in Linear Economy
Author(s) -
Mária Szalmáné Csete,
Diána Esses
Publication year - 2022
Publication title -
periodica polytechnica. transportation engineering
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.388
H-Index - 15
eISSN - 1587-3811
pISSN - 0303-7800
DOI - 10.3311/pptr.16616
Subject(s) - production (economics) , logistic function , function (biology) , cobb–douglas production function , swot analysis , order (exchange) , production function , computer science , economics , industrial engineering , business , economy , mathematics , engineering , microeconomics , statistics , marketing , finance , evolutionary biology , biology
In this study, the Cobb Douglas production function was built in order to investigate the linear economy, the redesign of intralogistics in a company. Authors have investigated a production function that describes the connection between the production of liquids, energy efficiency and water usage based on the logistic processes. The authors were able to build and simplify it to a linearized Cobb Douglas equation. With the help of mathematical-statistical analysis, the authors found that energy efficiency and water usage have a negative effect on production due to European legal considerations and logistic improvement could help in the solution of the problem. Then, the differences between the linear economy and the circular economy were examined. As a summary, a SWOT analysis exploring the differences was prepared.