On the criterion of optimal product structure in the micro‐economic system (enterprise) and adjustment of product structure

Abstract

In order to make a thorough inquiry into the criterion of optimal product structure in the micro‐economic system (enterprise), this paper has proposed and demonstrated the benefit‐type linear programming model, and based on it, the concepts of enterprise's product structure, feasible structure and optimal structure have been discussed and the criterion of optimal structure has been revealed. In this paper, the methods of simplex iteration and sensitivity analysis are both used to approach necessarily the adjustment of product structure under the circumstances of varied or invaried environment inside and outside the system, and as a final, it has come to a conclusion that the variation of resource price vector P would not affect the optimal product structure in enterprise, but the variation of resource‐constrained vector b will cause negative effects both on optimal product structure in enterprise and on determination of criterion for optimal structure.

Citation

Tao, L. (2003), "On the criterion of optimal product structure in the micro‐economic system (enterprise) and adjustment of product structure", Kybernetes, Vol. 32 No. 5/6, pp. 837-844. https://doi.org/10.1108/03684920210443905