The College of Administration and Economics at the University of Baghdad discussed , a master’s thesis in field of Economic by the student ( Mustafa Qubais Qasim ) and tagged with ( Estimating And Analyzing The Optimal Production Volume Of Food Industries In Iraq) , Under supervision of (Prof. Dr. Salah Mahdi Abbas )
The optimal production volume plays a prominent role, both economically and socially, in terms of achieving an economic surplus. This volume is determined by the level of efficiency followed in the facility, as achieving the highest efficiency ensures that profitability is enhanced and financial sustainability is achieved. Therefore, selecting the optimal production volume is an important process in economic establishments. Therefore, for the facility to achieve the optimal production volume, it must develop a strong strategy to increase productivity, improve production and distribution processes, control quality, develop working skills, use technology and apply best practices in its production.
The study aims to estimate the optimal production size of food industries in Iraq, through the analysis of the cost components of the food industries for the period (2004-2022), as descriptive and metric analysis was used in this study, as the descriptive analysis focused on calculating the economic indicators of food establishments of various sizes (large, medium, small), based on the data of the Ministry of Planning provided by the Central Bureau of Statistics, while the metric analysis focused on estimating the production cost functions and choosing the best ones from the economic and statistical aspects, as they were analyzed using the computer represented by the statistical program (Eviews10), and previous studies were guided by concepts derived from economic theory when choosing the appropriate mathematical image to express the cost function.
The study concluded to determine the optimal production volume, which amounted to (2192.3 billion dinars). As for the actual production volume, it amounted to (1606.5 billion dinars), which is less than the optimal production volume that lowers costs. Therefore, this means that the food industries are far from the optimal production volume. The study concluded that the industry has not yet achieved optimal costs, with the ratio of optimal costs to optimal production at )0.649(, which is lower than the ratio of actual costs to actual production at )0.735(. This indicates that actual production costs are higher than those at the optimal level, negatively impacting economic efficiency. The study recommended increasing production to achieve the optimal volume, which would reduce costs and increase supply. To achieve this, a socialist approach involving central planning and support for local industries is needed.
