Izvestiya of Saratov University.

Economics. Management. Law

ISSN 1994-2540 (Print)
ISSN 2542-1956 (Online)

For citation:

Kogdenko V. G., Stepanov I. A. Platinum group metals sales process: Planning and optimization. Journal Izvestiya of Saratov University. Economics. Management. Law, 2024, vol. 24, iss. 2, pp. 147-159. DOI: 10.18500/1994-2540-2024-24-2-147-159, EDN: OTKECG

This is an open access article distributed under the terms of Creative Commons Attribution 4.0 International License (CC-BY 4.0).
Full text PDF(Ru):
PDF icon ekonomika_2024_2-147-159.pdf
(downloads: 0)
Language: 
Russian
Heading: 
Management
Article type: 
Article
UDC: 
338.2
DOI: 
10.18500/1994-2540-2024-24-2-147-159
EDN: 
OTKECG

Platinum group metals sales process: Planning and optimization

Autors: 
Kogdenko Vera G., National Research Nuclear University MEPhI (Moscow Engineering Physics Institute)
Stepanov Ilya Alekseevich, National Research Nuclear University MEPhI (Moscow Engineering Physics Institute)
Abstract: 

Introduction. The development of methodological issues of optimizing the activities of mining and metallurgical companies and the sale of platinum group metals are highly relevant in the current market conditions due to sanctions restrictions and the severance of international economic ties. Theoretical analysis. The concept of an optimization model is formulated, the main goals for the sales unit of a mining and metallurgical company are determined, a balanced approach to monthly planning is justified, which involves dividing the sales volume into two parts: under long-term contracts and on the spot market, and the stages of constructing an optimization sales model are developed. Empirical analysis. An optimization model is presented for calculating sales volumes of platinum, palladium and rhodium within two months to obtain maximum operating profit. The model is based on regression modeling of prices for platinum group metals, a cost model built on open data from a Russian mining and metallurgical company. Results. Approbation of the methodology made it possible to justify the sales volumes of platinum group metals in two forecast periods depending on the price environment, which provide the opportunity to increase the total profit of the company under given restrictions. 

Key words: 
methodology
planning
sales
platinum group metals
platinum
palladium
rhodium
optimization modeling
Reference: 
  1. Stepanov I. A. Development of business planning of Russian precious metals sales in conditions of macroeconomic and geopolitical instability. Izvestiya of Saratov University. Economics. Management. Law, 2023, vol. 23, iss. 2, pp. 174–179 (in Russian). https://doi.org/10.18500/1994-2540-2023-23-2-174-179 , EDN: MDSXFS
  2. Palkina D. С. Key indicators for assessing potential of large non-ferrous metallurgy enterprises in Russia. Problems of Territory’s Development, vol. 26, no. 4, pp. 27–46 (in Russian). https://doi.org/10.15838/ptd.2022.4.120.3
  3. Chernyshev A. I. Metallurgical industry of the Russian economy: modern problems and prospects. Theoretical and Applied Economics, 2016, no. 2, pp. 14–19 (in Russian). https://doi.org/10.7256/2409-8647.2016.2.16557 . Available at: https://nbpublish.com/library_read_article.php?id=16557.html (accessed January 30, 2024).
  4. Pechenskaya-Polischuk M. A., Malyshev M. K. Financial and economic aspects of export-import activity of Russia’s non-ferrous metallurgy for 2013–2020 and its further development trends. Economic and Social Changes: Facts, Trends, Forecast, 2022, vol. 15, iss. 4, pp. 102–117 (in Russian). https://doi.org/10.15838/esc.2022.4.82.7
  5. Stepanov I. A. Results of the impact of restrictive measures on the Russian market of precious metals in 2022. Finansovaya bezopasnost’. Sovremennoe sostoyanie i perspektivy razvitiya [Financial Security. Current State and Prospects of Development. Materials VIII International scientifi c and practical conference International Network Institute in the field of AML/CFT]. Moscow, NRNU MEPhi Publ., 2022, vol. 2, pp. 202–207 (in Russian). EDN: DXOKHW
  6. Monden Y., Lee J. How a Japanese auto maker reduces costs. Management Accounting, 1993, vol. 75, no. 2, pp. 22–26.
  7. Stepanov I. A. Analysis of the infl uence of factors on the market of platinum group metals in 2022. Innovatsionnye mekhanizmy upravleniya tsifrovoy i regional’noy ekonomikoy [Innovative Mechanisms of Digital and Regional Economy Management. Proceedings of the V International Student Scientific Conference. Moscow, NRNU MEPhi Publ., 2023, pp. 16–28 (in Russian). EDN: TGRMJQ
  8. Denisenko M. A., Kechin S. A., Pikin M. S. Copper price production methods. Vestnik Universiteta, 2015, no. 12, pp. 168–172 (in Russian). EDN: VZTCKR
  9. Rubashkin G. V. Forecasting of sales volumes of industrial enterprises based on multiple linear regression models. Economic Analysis: Theory and Practice, 2006, no. 8 (65), pp. 51–57 (in Russian).
  10. Barneson J. Resource planning for a rare metals corporation using mixed integer goal programming and resource planning and management system. Masters Thesis. Oregon State University, 1975. Available at: https://ir.library.oregonstate.edu/concern/graduate_thesis_or_dissertations/7d278z13g (accessed January 30, 2024).
  11. Siemon M., Schiffer M., Mitra S., Walther G. Valuebased production planning in non-ferrous metal industries: Application in the copper industry. IISE Transactions, 2020, vol. 52, iss. 10, pp. 1063–1080. https://doi.org/10.1080/24725854.2020.1711992
  12. Afflerbach P., Fridgen G., Keller R., Rathgeber A. W., Strobel F. The by-product effect on metal markets – New insights to the price behavior of minor metals. Resources Policy, 2014, vol. 42(C), pp. 35–44. https://doi.org/10.1016/j.resourpol.2014.08.003
  13. Pedroso C. B., da Silva A. L., Tate W. L. Sales and Operations Planning (S&OP): Insights from a multicase study of Brazilian Organizations. International Journal of Production Economics, 2016, vol. 182, pp. 213–229. https://doi.org/10.1016/j.ijpe.2016.08.035
  14. Ingham M., Das S., Yadavalli S. Investigating sales and production volumes of gold, PGM, iron ore and manganese using a Bayesian change point detection approach. In: Competitive Operations Management for Driving Africa Forward. Proceedings of the African Operations Management Conference, 2–4 October 2017. Muldersdrift, Gauteng, South Africa, 2017, pp. 91–96.
  15. Simatupang T. H., Sunitiyoso Y. Developing The Strategy for Steel Sales by Scenario Planning Approach. Journal of World Science, 2023, vol. 2, iss. 10, pp. 1703–1722. https://doi.org/10.58344/jws.v2i10.452
  16. Stepanov I. A. State, prospects and risks of development of the platinum group metals market in the postpandemic economy. Ugrozy i riskifinansovoy bezopasnosti v kontekste tsifrovoy transformatsii [Financial Security Threats and Risks in the Context of Digital Transformation. Materials of the VII International scientific and practical conference International Network Institute in the field of AML/CFT]. Moscow, NRNU MEPhi Publ., 2021, pp. 700–708 (in Russian). EDN: PFHITX
  17. Ivanov D. D. Analysis of trends in the market of derivatives for valuable metals. Journal of Economics and Business, 2022, vol. 4–1 (86), pp. 172–179 (in Russian). https://doi.org/10.24412/2411-0450-2022-4-1-172-179
  18. Kogdenko V. G. Strategic modeling of company profi ts under the Monte Carlo method. Economic Analysis: Theory and Practice, 2018, vol. 17, iss. 9, pp. 1622–1641 (in Russian). https://doi.org/10.24891/ea.17.9.1622
  19. Stepanov I. A. Prospects and risks of sales of Russian precious metals on the example of PJSC “MMC Norilsk Nickel”. Materialy III Mezhdunarodnogo nauchnoprakticheskogo foruma po ekonomicheskoy bezopasnosti «VIII VSKEB» [Materials of the III International Scientifi c and Practical Forum on Economic Security “VIII VSKEB”]. Moscow, NRNU MEPhi Publ., 2022, pp. 280–285 (in Russian). EDN: EJJUFY
  20. Gosudarstvennyy doklad «O sostoyanii i ispol’zovanii mineral’no-syr’yevykh resursov Rossiyskoy Federatsii v 2021 godu». Moskva, 2021 (State report “About the state and use of mineral resources in the Russian Federation in 2021”. Moscow. 2021). Available at: https://gd2021.data-geo.ru/pmd/pt/ (accessed January 30, 2024) (in Russian).
  21. PGM market report May 2014, 2018, 2023. Johnson Matthey. Available at: https://matthey.com/en/productsand-markets/pgms-and-circularity/pgm-markets/pgmmarket-reports (accessed January 30, 2024).
  22. Sadrieva A. M., Faizullina E. F., Golubina V. V. Assessment of the competitiveness of an industrial enterprise (on the example of PJSC MMC Norilsk Nickel). In: Vesenniye dni nauki [Spring Days of Science. Collection of reports of the International Conference of Students and Young Scientists (Ekaterinburg, April 20–22, 2023)]. Ekaterinburg, Ural Federal University Publ., 2023, pp. 1466–1471 (in Russian).
  23. Precious Metals Forecast 2023. Heraeus. Available at: https://www.heraeus.com/en/hpm/company/hpm_news/2022_hpm_news/precious_forecast_2023.html (accessed January 30, 2024).
  24. Precious Metal Prices. LBMA. Available at: https://www.lbma.org.uk/prices-and-data/precious-metal-prices#/ (accessed January 30, 2024).
  25. PGM prices and trading. Johnson Matthey. Available at: https://matthey.com/products-and-markets/pgmsand-circularity/pgm-management/ (accessed January 30, 2024).
  26. Kogdenko V. G. A methodology for fi nancial modeling based on published consolidated fi nancial statements. Economic Analysis: Theory and Practice, 2017, no. 7 (466), pp. 1269–1285 (in Russian). https://doi.org/10.24891/ea.16.7.1269 , EDN: ZBOHIT
  27. Annual Report of PJSC MMC Norilsk Nickel for 2017– 2022. PJSC MMC Norilsk Nickel. Site. Available at: https://www.nornickel.ru/investors/reports-and-results/annual-reports/ (accessed January 30, 2024) (in Russian).
  28. Kostovetskaya L. A., Kosukhkin R. Z., Shvarts M. A. Analiz proizvodstvenno-khozyaystvennoy deyatel’nosti gornykh predpriyatiy [Analysis of production and economic activity of mining enterprises]. Moscow, Nedra, 1991. 208 p. (in Russian).
Received: 
23.02.2024
Accepted: 
10.03.2024
Available online: 
31.05.2024