Game theory model for the development of optimal strategy towards innovative products manufacturing at the enterprise

• Main Authors: Zoryna Yurynets, Rostyslav Yurynets, Taras Gutor
• Format: Article
• Language: English
• Published: LLC "CPC "Business Perspectives" 2017-11-01
• Series: Problems and Perspectives in Management
• Subjects: enterprise; game theory model; innovative products; manufacturing; optimal strategy
• Online Access: https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/9372/PPM_2017_03cont1_Yurynets.pdf

The carried out research confirms the expediency of economic mathematical modeling (game theory) implementation in practice of economical activity. The paper presents a designed game theory model of optimal innovative strategy for product manufacturing at the enterprise considering the expenses due to the production, storage and transportation of basic goods; extra expenses for the development of innovative products and supplementary costs granted by the company for the innovative products development in order to decrease possible material losses by the defined reasons. The developed game theory model aims to develop the optimal strategy for innovative products manufacturing was implemented and approved at the enterprise, which produces different means of operative communication. The assigned solution of a task included the calculation of the company’s optimal innovative product release with the aim of receiving a maximum income from the developed products realization. The model enables to define the percentage ratio of the efficient manufacturing of innovative products at the enterprise, considering the state of the market and competitive behavior in overall product assortment, the possibility of this ratio optimal correction in order to maximize the income from innovative products realization. Performed calculations allow the company’s managers to determine the beneficial and non-beneficial market state for certain types of innovative products and to improve the decision making process concerning the increase or the reduction of innovative products manufacturing.