Tools For Ensuring Adaptability Of Small Batch Production

Vladimir Kolmakov, Irina Sharova

It is known that small serial manufacturers can respond more quickly to changing market demand due to the alleged flexibility in setting up the product, but they are quite limited in their ability to provide the necessary additional quantity of goods and services to their current and potential customers if a rapid expansion of the quantity is required. Compared to large producers, small-scale producers may be more sensitive to changes in market demand only if they have suitably matched capital resources or excess production capacity. This is why the availability of funds can be crucial if a company's competitiveness is determined by its ability to scale its output. The authors put forward a hypothesis that the phenomenon of the General economy can be adopted in this case. Proof of the hypothesis is carried out through the use of a number of outsourcing models of production, as well as the construction of a business valuation model. Using simulation modeling allows one to conclude the following: the use of outsourcing allows one to load previously unused capacity, which results in an increase in revenue and capacity growth of the company. The authors determined that small-scale flexibility and flexibility provided by exchange (the ability to maintain excess market demand) can effectively increase the value of the business and not lose it when demand decreases to the standard level. Subsequently, it is planned to improve the accuracy of the model through the use of survey-based estimates of a particular business development direction

Volume 12 | Issue 6

Pages: 2487-2493

DOI: 10.5373/JARDCS/V12I6/S20201208