APPLICATION OF PROFITABILITY CONCEPT: A CASE IN THE PLASTIC RECYCLING INDUSTRY

S.A. Oke, O.E. Charles-Owaba, I.O. Popoola

Abstract


ENGLISH ABSTRACT:In this article the principles of industrial engineering are applied to maximize the profitability of the recycling industry. A case in the plastic recycling industry is presented to demonstrate the practical application of the financial calculation functions developed in the paper. In particular, the profitability maximization concept for the plastic recycling industry was examined, based on the theory of demand and supply. By estimating the profit realizable on regular as well as high product demand, part of the objective of the paper was achieved. Inventory principles were further applied to determine optimum inventory levels.

AFRIKAANSE OPSOMMING: Die beginsels van bedryfsingenieurswese word in die artikel toegepas om die maksimisering van winsgewendheid by herwinbaarheidsvraagstukke te bewerkstellig. 'n Voorbeeld wat voorkom by die herwinbaarheid van plastiek word voorgehou om te toon hoedat finansie modellering aangewend kan word. Voorraadhouding onder toestande van stabiele en toenemende vraag word behandel en in besonderheid ondersoek.


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DOI: https://doi.org/10.7166/18-1-131

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