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Mathematical onsets concerning the determination of the optimum limit of the profitability on enterprises

Author

Listed:
  • Lupulescu, Grigore
  • Guran, Liliana
  • Ioana, Catrina

Abstract

Our paper presents an original method named The Optimum Limit of the Profitability (O.L.P.), for the characterization of the optimum physical output for one enterprise. On our research paper for the definition of this concept we have started with the exploration of the mathematical models which can mark out the correlation between the components of The Optimum Limit of the Profitability. Then we have pursued the maximization of the acquired incomes, in special given conditions, given by the value of the optimum sales, concurrent with the minimization of the expenditures afferent them. After some analysis and simulations we conclude that the mathematical models offered by the linear analysis would answer at all requirements of our research. The determination of The Optimum Limit of the Profitability by the linear programming method suppose the prosecution of the budget of the entire activity for one year divided in less periods of time (trimester divided in months ). Then, we present the steps succeeded for the elicitation of the The Optimum Limit of the Profitability using the mathematical models offered by the linear programming and the usefulness of this for the output of enterprise.

Suggested Citation

  • Lupulescu, Grigore & Guran, Liliana & Ioana, Catrina, 2010. "Mathematical onsets concerning the determination of the optimum limit of the profitability on enterprises," MPRA Paper 26967, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:26967
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    More about this item

    Keywords

    output; incomes; costs; profitability; limit of the profitability; The Optimum Limit of the Profitability;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General

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