Optimization of biogas supply networks considering multiple objectives and auction trading prices of electricity
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Abstract This contribution presents an hourly-based optimization of a biogas supply network to generate electricity, heat and organic fertilizer while considering multiple objectives and auction trading prices of electricity. The optimization model is formulated as a mixed-integer linear programming (MILP) utilizing a four-layer biogas supply chain. The model accounts for biogas plants based on two capacity levels of methane to produce on average 1 ± 0.1 MW and 5 ± 0.2 MW electricity. Three objectives are put forward: i) maximization of economic profit, ii) maximization of economic profit while considering cost/benefits from greenhouse gas (GHG) emissions (economic +GHG profit) and iii) maximization of sustainability profit. The results show that the economic profit accrued on hourly-based auction trading prices is negative (loss), hence, four additional scenarios are put forward: i) a scenario whereby carbon prices are steadily increased to the prevalent eco-costs/eco-benefits of global warming; ii) a scenario whereby all the electricity auction trading prices are multiplied by certain factors to find the profitability breakeven factor, iii) a scenario whereby shorter time periods are applied, and investment cost of biogas storage is reduced showing a relationship between cost, volume of biogas stored and the variations in electricity production and (iv) a scenario whereby the capacity of the biogas plant is varied from 1 MW and 5 MW as it affects economics of the process. The models are applied to an illustrative case study of agricultural biogas plants in Slovenia where a maximum of three biogas plants could be selected. The results hence present the effects of the simultaneous relationship of economic profit, economic +GHG profit and sustainability profit on the supply and its benefit to decision-making.Keywords:
Biogas
Profit maximization
Supply chain optimization
Working profitably, companies contribute to the economic development of society, contributes to the creation and multiplication of public wealth and the growth of the welfare of the state. However, it is not enough to use the profit indicator to evaluate the company's performance, since the presence of profit does not mean that the company is operating normally. The absolute amount of profit does not allow us to judge the degree of profitability of a particular company. Many companies that have received the same amount of profit have different sales volumes. Therefore, to determine the effectiveness, it is necessary to analyze the profitability indicators. Return on sales is a key indicator of the company's financial performance. In modern economic conditions, the problem of increasing the profitability of sales is one of the most urgent for companies. The article presents a model for analyzing the profitability of sales, developed by Filatov E. A. The article reveals the influence of factors that affect the change in the profitability of sales of large and medium-sized enterprises in the construction industry of the Irkutsk region and gives the author's methodological approaches for its calculation (methods of factor analysis, developed by Filatov E. A.). The article presents the author's analytical, systematized statistical material for the analysis of key indicators that reveal the impact on the change in the profitability of sales of large and medium-sized enterprises in the construction industry of the Irkutsk region of the Russian Federation.
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Abstract In economic practice, many specific indicators of profitability are used. They may differ in the complexity of the calculation, the availability of necessary information, and the usefulness of the analytical conclusions process. To measure the size of profit and the amount of funds used to achieve it in the industry economy, the indicator profitability of production is used. Profitability of production is an important parameter for determining the efficiency of the economy. Profitability of production is the most general, qualitative indicator of economic efficiency of production, efficiency of functioning of companies in the industry. This indicator is very important for making current and strategic decisions. The article presents the author’s model for analyzing the profitability of production. The article reveals the influence of factors affecting the change in profitability and are more methodical approaches to its calculation (methods of factor analysis developed by Filatov E. A.). The article presents the author’s analytic, systematic statistical material for the analysis of key indicators revealing the impact on the change of profitability of the construction industry in Irkutsk region of the Russian Federation.
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Abstract Abstract The relationship between profitability and efficiency in a production line is discussed at length for the continuous production model. We prove that a solution which maximizes efficiency will not necessarily maximize profit. Several useful relationships between profitability and efficiency are developed which can greatly enhance computational efficiency. A solution procedure is developed which will determine the optimal number of work stations by maximizing an assumed profit function. An example is provided to illustrate these relationships and the entire solution procedure.
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The purpose of entrepreneurial activity is not only to make a profit, but also to ensure high profitability of economic activity. Unlike the absolute profit indicator, profitability is a relative indicator and reflects the degree of profitability of the company. Profitability acts as an economic category, an estimated performance indicator, a target, a tool for calculating the company's net income, a source of formation of various funds. As an effective indicator, it characterizes the efficiency of the use of available resources, success or failure in business, growth or decline in the volume of activity. Profitability indicators characterize the financial results and efficiency of the company. They measure the profitability of a company from various positions and are systematized in accordance with the interests of participants in the economic process. In the article, the author has developed a 3-factor model to conduct a factor analysis of the profitability of production. In deterministic factor analysis, the author's model of profitability of production (resulting a criterion indicator) is represented by the product of 3 factors, of which two are known and one is the author's. The relationship of these three factors with the profitability of production is functional. The article reveals the influence of factors affecting the change in the profitability of production of enterprises in the field of transportation and storage of the Irkutsk region and gives the author's methodological approaches for its calculation (methods of factor analysis developed by Filatov E.A.). The article presents the author's analytical, systematized statistical material for the analysis of key indicators revealing the impact on the change in the profitability of production of enterprises in the field of transportation and storage of the Irkutsk region of the Russian Federation.
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Although profitability analysis has been identified as a useful technique, it is an under-researched area. This paper extends the limited research into profitability analysis by using research interviews to examine the circumstances when profitability analysis is or is not prepared, why various types of profitability analysis are prepared and the how it is used in decision making. Some notable results indicate that operating units prepare profitability analysis when there is an interest in preparing it and the resources exist to prepare it. Operating units prepare both product profitability analysis (PPA) and customer profitability analysis (CPA) to assist with increasing profits through managing low profit or loss making customers. The aim is to identify those products that contribute to the low profit or loss of a customer. In those operating units preparing only PPA, its function is to identify low profit or unprofitable products. This information is used to assist in determining what action should be take to increase the profits of those products. In contrast, customer focused operating units produce only CPA.
Customer profitability
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In connection with increasing the role of profit and profitability under the conditions of the economic reforms carried out in the socialist countries, economists of the Soviet Union and of other socialist countries have been confronted by the task of intensifying the theoretical elaboration of problems of profit and profitability and of means of improving the use of these categories in management practice.
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This paper analyses the effect of off-balance sheet banking activities on their profitability. In recent years, there have been various innovations in the bank’s products. Particularly, banks except for dealing with traditional activities (on balance sheet activities), they can also deal with off balance sheet activities (OBS).The Reasons for the existence of OBS activities, identified the need for the banks to survive in the intense competitive environment, to maximize their profit and to manage their risk (hedging).
Based on the problem mentioned above, the question is whether off balance sheet activities really help to increase the bank’s income-profit or not. This is the main question that responds to and considers this empirical study. However, for this purpose, the analysis used macroeconomics connected with competitiveness variables. These variables were not included in previous papers and intend to promote knowledge about the OBS activities and profitability by taking it a step further.
In conclusion, the empirical results show that the OBS affect profitability positively (INTM, ROAA, ROAE) for banks in EU-28’s countries on bivariate analysis whereas on multivariate analysis profitability was affected positively only for the ROAA. At the same time, the results are mixed for Greece since the profitability was affected positively by the OBS only for INTM.
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Any commercial organization tends to make a profit in the course of its activity. As a result, these enterprises may be risky since they take different risks in pursuit of generating a profit and achieving other goals. Taking various risks might make a company less financially stable. In other words, the level of financial stability of a company is likely to be decreased. The importance of the given topic is that analyzing the financial stability and profitability of an entity enables us to determine how financially stable and profitable a company is. Moreover, this analysis allows finding out how particular indicators change from year to year and to prevent a decrease in financial stability and profitability indicators. This paper may be considered as an attempt to analyze the financial stability and profitability of one company from the oil and gas industry, specifically, British Petroleum (BP) for the period from 2014 to 2019. Besides, some recommendations may be developed in terms of increasing the company’s performance indicators if necessary.
Financial Stability
Economic stability
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Profitability can be defined as the positive result obtained by an entity that operates for the purpose of profit, through the efficient use of material, financial and human resources, in a manner that enables it to operate in optimal conditions for financiers, employees and Business partners but especially to ensure future performance. There is a direct correlation between the performance of economic entities in an economy and its well-being. Profit is calculated according to strict tax rules and, at least theoretically, is the expression of the minimum use of resources in order to obtain maximum results. Constant long-term profitability ensures recognition of the value of an economic entity through performance and efficiency. In this article, the authors present the main aspects regarding the use of the statistical tool in the analysis of the company’s profitability.
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The reaffirmation of the elements of the market economy system imposes the need to redefine the motives for management and the categories for expressing the efficiency of the business entities.Accordingly, the substance and the manner of expressing and measuring profitability undergo changes characteristic in the standards of the market economy and thus the basic starting point for quantifying profitability is profit.In this way, assumptions are made to understand the purpose of the principle of profitability that should be studied through the following components and relationships: • Global relationship between the profit and the assets engaged, • the partial relationship between the elements of the profit and the elements of the assets engaged, • analysis and quantification of the factors that determine the size, the structure and the dynamics of the profit, i.e. the size and dynamics of the engaged assets on the other hand.Starting from the conclusion that the integral part of the complex of the profitability is the engaged assets, it is necessary to consider not only the volume of the investment and engagement of those assets, but also the intensity of their use and spending.The amount of the average engaged and invested assets is determined by two sizes:• the amounts of assets engaged and invested in the individual production process cycles, and • the duration of their engagement.
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