Dynamic Model of Enterprise Revenue Management Based on the SFA Model

Aliya Alimhanova, Andrey Vazhdaev, Artur Mitsel and Anatoly Sidorov ()
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Aliya Alimhanova: Faculty of Control Systems, Tomsk State University of Control Systems and Radioelectronics, 634050 Tomsk, Russia
Andrey Vazhdaev: Faculty of Control Systems, Tomsk State University of Control Systems and Radioelectronics, 634050 Tomsk, Russia
Artur Mitsel: Faculty of Control Systems, Tomsk State University of Control Systems and Radioelectronics, 634050 Tomsk, Russia
Anatoly Sidorov: Faculty of Control Systems, Tomsk State University of Control Systems and Radioelectronics, 634050 Tomsk, Russia

Mathematics, 2022, vol. 11, issue 1, 1-13

Abstract: The actual problem of enterprise revenue management that requires an effective solution is considered. Revenue is the main source of cash proceeds specifically from the main enterprise activities, as well as one of the main factors affecting enterprise functioning. As a result, the amount of revenue is extremely important for the company—it must be sufficient to ensure the repayment of all expenses of the company and the formation of the required profit amount. However, the amount of revenue itself is not the only important characteristic of revenue; the revenue stability over time and the revenue receipt regularity are no less important. The purpose of this work is to develop a dynamic model of enterprise revenue management, which differs from the model known in the literature by considering the parameter of enterprise performance efficiency. The parametric method of Stochastic Frontier Analysis (SFA) is used as a method to evaluate the efficiency of an enterprise. Financial indicators are used as input and output data. The model was tested on six small business sectors of a single-industry town for the period from 2007 to 2021. Data collection was carried out using the SPARK system, which allows selecting enterprises for research by the status of the enterprise (bankrupt/operating), by the size of the enterprise (large/medium/small/micro), etc. The above calculations based on the constructed modified model have demonstrated the possibility of using the enterprise’s revenue management with the desired rate of change and with the work efficiency parameter.

Keywords: dynamic programming; quadratic criterion; revenue; efficiency; financial performance; management; financial stability; stochastic frontier method; financial statements; management model; single-industry town (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2022
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