Management of pricing policy of a timber enterprise considering the problems of formation of raw material supply chains and determining production volumes

This paper considers a mathematical model that allows managers of a timber enterprise to develop supply chains and manage the pricing policy of the organization. This model is a modification of the model developed earlier and differs from it by taking into account the technology of raw material cutting. The model takes into account the consumption rates of raw materials, purchases on the commodity exchange, transportation of products and pricing policy of the enterprise taking into account the demand. The purpose of the model is to maximize the value of operating profit of the enterprise. When searching for a solution, an optimization strategy is applied which includes two stages: application of linear optimization at the first stage and genetic algorithm at the second stage. As a result of testing the model at one of the timber processing enterprises in the Primorsky Territory, data were obtained, based on which recommendations are formulated for managers of the company regarding cooperation with loggers. This work represents an important step in the development of supply chain management methodology in the timber industry, taking into account the technology of raw material cutting. Further research may include modification of the model using stochastic factors, improving decision-making methods and development of more accurate product demand functions. The work has practical significance for enterprises of the timber processing industry, since it can contribute to the improvement of their production processes and increase profits.

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Publication Details

Journal
Business Informatics
Published
2024-12-27
DOI
https://doi.org/10.17323/2587-814x.2024.4.98.111
Primary Topic
Engineering and Environmental Studies
Type
article
Field-Weighted Citation Impact
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article

Management of pricing policy of a timber enterprise considering the problems of formation of raw material supply chains and determining production volumes

Rodion Rogulin
Business Informatics
Engineering and Environmental Studies
article

Management of pricing policy of a timber enterprise considering the problems of formation of raw material supply chains and determining production volumes

Rodion Rogulin
article en

Abstract

This paper considers a mathematical model that allows managers of a timber enterprise to develop supply chains and manage the pricing policy of the organization. This model is a modification of the model developed earlier and differs from it by taking into account the technology of raw material cutting. The model takes into account the consumption rates of raw materials, purchases on the commodity exchange, transportation of products and pricing policy of the enterprise taking into account the demand. The purpose of the model is to maximize the value of operating profit of the enterprise. When searching for a solution, an optimization strategy is applied which includes two stages: application of linear optimization at the first stage and genetic algorithm at the second stage. As a result of testing the model at one of the timber processing enterprises in the Primorsky Territory, data were obtained, based on which recommendations are formulated for managers of the company regarding cooperation with loggers. This work represents an important step in the development of supply chain management methodology in the timber industry, taking into account the technology of raw material cutting. Further research may include modification of the model using stochastic factors, improving decision-making methods and development of more accurate product demand functions. The work has practical significance for enterprises of the timber processing industry, since it can contribute to the improvement of their production processes and increase profits.

Business InformaticsVol. 18(4)
Vladivostok State University (RU)
Openalex Percentile: Top 67%
Engineering and Environmental Studies
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