СHOICE OF PRODUCTION STRUCTURE AS A FACTOR OF DEVELOPMENT OF MARKET POTENTIAL

Abstract

Subject. Rational organization of production of agricultural enterprises in modern market conditions becomes very important. Evaluating the effectiveness of their activities, business entities of the agricultural sector can choose an economically advantageous direction that meets the capabilities of the enterprise and the current economic conditions. The dominant activity of agrarian enterprises is crop production. The overall increase in productivity is greatly influenced by the increase in the production of gross output in this sectoral direction. In connection with the aforesaid, optimization of the production structure of the enterprise is of special importance. Purpose. Economic-mathematical model provides an opportunity to determine the main parameters of production development for current and long-term planning, can be used to analyze the generated production structure, which allows to determine the most appropriate options for using resources and the possibility of increasing production volumes, using the actual data of previous years. The integration of economic-mathematical models into the production process is necessary first of all for a more precise formalization of the enterprise's activities, as well as for further planning and forecasting the production cycle. Methodology. Use of methods of mathematical modeling, criteria for choosing optimal strategies. Results of the work. The proposed modeling algorithm will allow an agricultural enterprise to choose the optimal strategy associated with unfavorable environmental factors. Will allow to determine the projected volume of the structure of production. Conclusions and significance. Choosing the volume of production of certain types of products, the agricultural enterprise in today's market conditions is forced to take into account the price factor that affects the resulting profit indicators. The results of these studies will allow you to choose the optimal strategy that allows you to take profits when determining the proportions of production. This algorithm will avoid the risks associated with favorable and unfavorable changes in the price factor of the external environment.