Journal of Accounting and Management Information Systems (JAMIS)

Costs and performance management on the wine chain

Supp/2006 ,   p56..59

Andreea Raluca ION

Keywords:   agro-food chain, mathematic model, profit maximization, costs’ economy

Agro-food chain is efficient when the returns are over the payments, meaning the effects are over the efforts made for their achievement. To maximize the difference between returns and payments, meaning the profit, represents an objective for which we project an optimization model.
In this paper we elaborate and implement a mathematical model for profit maximization on the wine chain. There were defined the model’s requirements and restrictions, on which there was, constructed the profit maximization model implemented in three situations: opened chain, semi-integrated chain and total integrated chain. In the model construction we started from the premise that the chain profit, like efficiency express, is not only the amount of each agent profit, in the chain: supplying – producing – processing – selling, but it takes into account the synergic effect produced by their collaboration. This effect could be obtained making transportation, supplying, and general - administration expenses economies, when the phenomena of different activity integration occurs. After the model implementation, the maxim profit is obtained in the case of total integrated chain, when all the activities
– grapes producing, wine producing, its stabilization, packaging and distribution to the final consumer – are realized in the same economic unity. The economy of supplying, transportation, general – administrative expenses realized in the case of integration is economically transposed in a plus of profit, which means an increasing of the economical efficiency on the chain.