Production (economics)

Summary

Production is the process of combining various inputs, both material (such as metal, wood, glass, or plastics) and immaterial (such as plans, or knowledge) in order to create output. Ideally this output will be a good or service which has value and contributes to the utility of individuals. The area of economics that focuses on production is called production theory, and it is closely related to the consumption (or consumer) theory of economics. The production process and output directly result from productively utilising the original inputs (or factors of production). Known as primary producer goods or services, land, labour, and capital are deemed the three fundamental production factors. These primary inputs are not significantly altered in the output process, nor do they become a whole component in the product. Under classical economics, materials and energy are categorised as secondary factors as they are byproducts of land, labour and capital. Delving further, primary factors en

Official source

https://en.wikipedia.org/wiki/Production_(economics)

About this result

This page is automatically generated and may contain information that is not correct, complete, up-to-date, or relevant to your search query. The same applies to every other page on this website. Please make sure to verify the information with EPFL's official sources.

Related publications (9)

Related publications

Related people

Related units

Related concepts (41)

Related concepts

Related courses (20)

The course allows students to get familiarized with the basic tools and concepts of modern microeconomic analysis. Based on graphical reasoning and analytical calculus, it constantly links to real economic issues.

This course is a joint initiative between the School of Engineering and the College of Management to encourage and promote entrepreneurship and management skills, engineering design, hands-on experience, teamwork, and awareness of social and ethical implications in engineering and management.

This class will provide students with an understanding of some real-world issues related to the "knowledge economy." Why should we innovate as a society? Why innovation doesn't just happen and how can the government help firms innovate? We will answer these questions and others using economic tools.

Related courses

Related lectures (47)

Related lectures

'Peak Oil' As Classical Economic Process

François Meynard

Forecasts about 'peak oil', the limits of oil production, are the subject of controversies. 'Peak oil' forecasts are based on extrapolations of a priori chosen mathematical models fitted to field data. Scientifically that is not very sound. To clarify this point, in this paper 'peak oil' is modelled in a generic reductionist, approach, in which the conflicting dynamic between economic forces and physical laws are well identified. This model finds a natural interpretation just supress in a classical economic analysis frame. The 'peak oil' controversy is thus brought into the field of economic thought as a debate between classical and mainstream economics, in particular between an objective and a faith based appraisal about this historical event. The goal is not to improve forecasts about 'peak oil', which is very likely not a predictable event, but to propose an objective framework for the analysis of its systemic effects on economic production.

Multi-Science Publ Co Ltd2014

Design of a resource allocation system to optimise the output production of a Philip Morris factory

Gunila Tran

2006

A production scheduling problem with uncertain sequence-dependent set-up times and random yield

Byung Jun Joo, Paul Xirouchakis

A scheduling problem in a real production line with uncertain sequence-dependent set-up times and a random yield is considered. The production line can produce multiple product types as production lots, each of which is composed of a number of products of the same product type. To changeover product types, a sequence-dependent set-up operation should be performed, and only the lower and upper bounds are known for the sequence-dependent set-up times. Moreover, the processing time to produce the required number of product for each production lot is uncertain due to the random yield. For the objective of minimising the average tardy probability of given production lots, a systematic approximation scheme to estimate tardy probabilities of lots in any given production sequence is developed by taking not only the uncertainties but also the computational efficiency into account. As practical solution approaches, a simulated annealing and a discrete particle swarm optimisation algorithms using the approximation scheme are developed, and their performance are evaluated by computational experiments. Since there has been no research on the scheduling problems with uncertain sequence-dependent set-up times and random yield, the authors expect this research will make an excellent contribution to develop practical scheduling methodologies in uncertain scheduling environments.

Taylor & Francis Ltd2015