Optimization decisions of the organization of agribusiness production

Mykola Ilchuk, Sergiy Us and Ivan Androsovich

Ekonomika, Journal for Economic Theory and Practice and Social Issues, 2018, vol. 25, issue 6

Abstract: The purpose of the article is to deepen theoretical and methodological principles and develop practical recommendations for making optimization decisions of the organization of production of agribusiness in Ukraine. Research methodology. The research has been carried out with the use of economical and mathematical modeling of production optimization on the basis of an adoption of optimization solutions for its development in the future. Research results. The main results of the research are the proved level of influence of the main factors of production on its effectiveness and developed optimization model of the industrial structure of enterprises for the future. It’s made possible to make managerial decisions about further production diversification through production activity expansion in animal production as well as crop production amount through using crop rotation optimization. In particular, labor factor level has big influence on output level which makes Ukrainian enterprises less competitive than Polish ones. Elements of scientific novelty. The scientific novelty of the research lies in proposed optimization decisions of the organization of production, which ensure the sustainable development of the agricultural sector of economy. Risk factor in animal and crop production must be calculated and used to propose optimization structure with highest guaranteed profitability level. These solutions can be useful for Ukrainian agricultural enterprises, which could ensure their effective development. Practical significance. Ensuring sustainable development of entrepreneurial structures of agribusiness in Ukraine requires an adoption of optimization decisions on combining the considered types of production efficiency. This can be achieved through the development of an optimization model with indication of quantitative and qualitative restrictions on the interests of business, society and environment. Optimization structure implementation in production activity leads to an adoption of management decisions that will ensure investment activity expansion of agribusiness structures including innovation application and investment support. Tabl.: 3. Figs.: 1. Refs.: 8

Keywords: Production; Economics (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:ags:sereko:411548

DOI: 10.22004/ag.econ.411548

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