Evaluation of the optimal production output based on cleaner production approach

  • Anna Buruk Institute of Economics and Industrial Engineering of the Siberian Branch of the Russian Academy of Sciences
  • Olga Logachova Siberian State University of Geosystems and Technologies
  • Elena Ubojenko Siberian State University of Geosystems and Technologies
Keywords: cleaner production, production output, product competitiveness, fuzzy set

Abstract

Current research aimed at evaluating of the optimal production output based on cleaner production approach. In the conditions of increasing international environmental standards on the production of goods and services, an important concern of many international enterprises is maintaining their competitive advantages; satisfying the growing consumers’ demand on environment-friendly goods and increasing profits at the same time. To address this issue a model that shows the relationship between the price, the production output and the level of environmental competitiveness of the products is proposed. The developed model can be applied in those enterprises, which produce products for consumers demanding environment-friendly products, and are oriented on the EU and WTO markets. The link between environmental competitiveness of the products, price, investments and production outputs is established. It allows enterprises to assess the production capacity after the environmental modernization, that can be the basis for further planning of economic and environmental policy of the enterprises and decision-making process. The impact of cleaner production on the optimal production output, with a higher indicator of environmental competitiveness of the products is evaluated. The assessment of production competitiveness is carried out on the basis of application of the fuzzy logic approach. This approach assists in describing unknown functional dependencies expressed in the form of qualitative relationships, and describing approximate reasoning of the use of fuzzy algorithms, which are a valuable tool for approximate analysis and decision-making processes, which is difficult to apply in conventional quantitative methods. The weight of indicators of environmental competitiveness of the products is estimated with the use of the method of pair comparisons. The use of this method is dettermined by the need to process a small amount of heavily formalized data (expert assessments of marketing research specialists). The method of paired comparisons allows reducing the subjectivity of expert assessments by checking them on consistency and reliability.

Published
2019-04-30
How to Cite
Buruk, A., Logachova, O., & Ubojenko, E. (2019). Evaluation of the optimal production output based on cleaner production approach. Journal of Modern Economic Research, 1(1), 23-38. Retrieved from https://www.denakyrpublishing.science/index.php/jmer/article/view/4
Section
Articles