OPTIMIZATION OF PRICE REGULATION BETWEEN PRODUCT MANUFACTURERS AND RAW MATERIAL SUPPLIERS TAKING INFLATION PROCESSES INTO ACCOUNT

Keywords: optimization, prices, raw materials, finished products, inflation, dollar rate, model, criterion, correlation, equivalent exchange

Abstract

The article examines the impact of inflation and the dollar exchange rate on the prices of agricultural goods and offers a model of optimal price harmonization for finished products and raw materials. Analysis showed that the issue of improving the efficiency of food industry production is developed by scientists in Ukraine, the EU, the USA, etc. Mainly attention is paid to the technological aspect and increasing competitiveness. At the same time, the issue of cost-effective pricing policy and a scientifically based strategy for promoting finished products on the market has not been developed enough. A study of the relationship of existing prices for finished products with the dollar exchange rate and inflation index in Ukraine was carried out. The presence of a high dependence of prices for agricultural products on these indicators is determined. Authors proposed to consider the indicators of the dollar exchange rate and inflation indices when calculating scientifically based, optimal prices. Ensuring the efficiency of processors and suppliers of raw materials requires optimizing the prices of finished products and raw materials in such a way that the price ratio stimulates both the production and supply of raw materials to build the structure and organization of a wider sales network for finished products. The economic and mathematical model, the calculation of optimal prices for raw materials and finished products are proposed. The criterion for optimization in the model is the volume of sales of products of the processing enterprise and farms. Constraints in the model are the profitability of enterprises, the upper and lower limits of prices for raw materials and finished products, taking into account the dollar exchange rate and inflation indices. The model allows you to coordinate the profitability of enterprises and provide the necessary profitability to the processing enterprise and the maximum possible for the supplier of raw materials The developed measures of integrated formation of prices for raw materials and ensuring the profitability of processing enterprises are aimed at eliminating the monopoly dictate of the processor on purchase prices, ensure mutually beneficial cooperation of partners, the effectiveness of which is determined by the found, scientifically based restrictions. In such conditions, the partnership of production participants will be mutually beneficial and sustainable.

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Published
2022-09-02
How to Cite
Demydenko, M., & Pistunov, I. (2022). OPTIMIZATION OF PRICE REGULATION BETWEEN PRODUCT MANUFACTURERS AND RAW MATERIAL SUPPLIERS TAKING INFLATION PROCESSES INTO ACCOUNT. Entrepreneurship and Innovation, (24), 83-86. https://doi.org/10.32782/2415-3583/24.13
Section
Economics and business management