Economic Analysis: Theory and Practice
 

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Management of industrial enterprise production program in conditions of unstable market demand

Vol. 18, Iss. 6, JUNE 2019

Received: 19 February 2019

Received in revised form: 1 April 2019

Accepted: 24 April 2019

Available online: 28 June 2019

Subject Heading: BUSINESS PERFORMANCE

JEL Classification: С53, D24, L23

Pages: 1057–1072

https://doi.org/10.24891/ea.18.6.1057

Mikhaleva E.P. Tula State University (TulSU), Tula, Russian Federation
ep-mihaleva@yandex.ru

ORCID id: not available

Domozhirova I.V. Tula State University (TulSU), Tula, Russian Federation
irina_domozhirov@mail.ru

ORCID id: not available

Subject Companies of all forms of incorporation face increasing competition in constantly evolving environment. Untimely response to challenges in the market leads to economic and financial instability and destroys business efficiency.
Objectives The study aims to design a new methodological approach to improving the integrated management system of production program at industrial enterprises. The system will enable successful development of business entities and their prompt response to changing market needs.
Methods We employ methods of financial, economic, and comparative analysis, economic and mathematical modeling, expert estimations.
Results We offer a scientific and methodological approach that includes an algorithm of production program management, a set of tools to manage groups of finished products, a model of continuous short-term planning of production. The approach enables to increase the level of customer service in conditions of uncertainty of demand, taking into account the seasonality factor and possible changes in market demand.
Conclusions To meet market demands in a timely manner, it is important to have an approach to management of production, which differs from a traditional one. The new approach should focus on uninterrupted production and marketing activities of industrial enterprises and consider the market volatility.

Keywords: production program, volatile demand, risk

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