Maximization of the profits through the optimal mix of products

• Main Authors: Morales Bañuelos, Paula Beatriz, Smeke Zwaiman, Jorge, Huerta García, Luis
• Format: Article
• Language: English
• Published: Asociación para la Formación y la Investigación en Ciencias Económicas y Sociales 2018-07-01
• Series: Finance, Markets and Valuation
• Subjects: optimal product mix; scarce internal and external resources; theory of constraints; throughput accounting; based costing activities with multiple restrictions
• Online Access: https://journalfmv.com/en/archive/2018/2/0683aafeac.html

When the plant of a company operates at its maximum capacity, or when the people who work in an entity that is dedicated to the provision of services are at the top in the amount of work; the administration of the company must establish priorities, analyzing the profitability by scarce resource of each one of the products and / or services; once the products and/or services have been identified in accordance with said meter, the service that provides the greatest profitability will be manufactured and/or provided, if the installed capacity is available to continue production, the second place will be elaborated, and so on until the scarce resource is exhausted. In the present study, several simulations were carried out, analyzing the results by applying the traditional model of allocation of indirect manufacturing expenses under one or more restrictions, the Theory of restrictions together with the Throughput Accounting; obtaining as a result in all cases that the cost based on activities with multiple restrictions is the one that provides the best possible result in contrast to the other models.