Management of Production Potential Considering Factors of Fixed Assets Renewal on the Basis of Modeling

Abstract

The article considers the approaches to the analysis and management of dynamics of the production potential, in particular fixed assets (FA) dynamics, on the basis of modeling this process. The need for such research arises due to the fact that in economic theory, in general, there are not enough works that would analytically link the rates of production growth, as a result, with the factors that determine it: service life and profitability of FA, depreciation rate, share of capitalized profit. According to the adopted approach, the study is performed in two stages. First of all, the scheme of FA renewal, taking into account constant of their growth rates and the service life is being constructed. In the second stage, an appropriate economic-mathematical dependence is developed and solved. In general, the article uses indicators that are generally accepted in the economic analysis of enterprises. However, both in theory and in practice, this is not related to the results achieved in relation to such a criterion as the growth rate of production. The study allowed to obtain the appropriate analytical apparatus to solve this problem. The use of a developed equation allowed to build an important quantitative dependence between resource parameters and the growth rate of fixed assets. The results are also presented in tabular form and allow to compare the options for the production potential renewal and take them into account when making appropriate managerial decisions. For the first time, a number of economic conclusions are obtained in the article with the help of modeling, which are important and cannot be detected by other methods of analysis. Also, for the first time by approximating the nonlinear rather complex dependence a simple dependence is obtained to calculate FA' renewal and disposal coefficients. That consequently allows determining the components of investment structure, which are used for FA' renewal.