This relates to analysis designed for planning of the company`s activities on the basis of agreements with customers and suppliers and identifies prospects based on the demand for products, work and services.
The production and sales volume are interdependent parameters. When production capacities are limited and demand is not the volume of production gets higher priority. But as the market is saturated and more competitive production determines the volume of sales, the potential sales are the basis for the development of the production program. The company must produce only those goods to the extent that they can be sold. The pace of growth in production and sales, better quality directly affect the amount of the costs, profits and profitability, so the analysis of production is important for the enterprise.
The purpose of the analysis is to determine the most effective ways to increase the volume of production based on factor analysis.
Analysis of production consists of: