Research into the process of multi-level management of enterprise production activities with taking risks into consideration

• Main Authors: Vitalina Babenko, Nataliya Chebanova, Natalia Ryzhikova, Serhii Rudenko, Nataliia Birchenko
• Format: Article
• Language: English
• Published: PC Technology Center 2018-02-01
• Series: Eastern-European Journal of Enterprise Technologies
• Subjects: dynamic optimization of management process; multi-level management; set of reach; minimax guaranteed result
• Online Access: http://journals.uran.ua/eejet/article/view/123461

The study considers the process of management of the production activity of an enterprise during a certain interval of time. It takes into account components of the production process and an influence of various production and external factors, including risks. We developed the content and a formulation of the problem of a multi-level process of management of the production activity of an enterprise in the presence of risks. Multi-level management involves a use of two levels of management based on the proposed stages. It involves formation of a set of alternatives to possible levels of management and contains output product volumes. Also, formation of a set of replenishment of material, labor resources and investment resources (second level of management). We developed the method based on the construction of sets of areas of reach taking into account risks. On the basis of its application, we proposed the solution of the discrete optimization problem with a help of minimax. The established optimal management provides a guaranteed result for a solution to the problem of the process of management of production activities of an enterprise under the influence of any risks from a set of permissible ones. At the same time, we reduced the complex problem of dynamic optimization of multi-level management with the consideration of risks to the realization of a finite sequence of one-step problems of discrete optimization. The results of the practical application of the proposed method make possible to increase the efficiency of management of the production activity of an enterprise at the expense of optimum volumes of production, reduction of expenses for replenishment of resources, and also reduction of negative influence of risks.