Optimization of the product (goods, services) range based on margin analysis

The article presents a methodology for using margin analysis to make management decisions in the field of the range of products, goods sold, works performed, services rendered. The methodology is based on an iterative approach, which includes a number of steps to optimize the product (goods, works, services) range based on an assessment of their contribution to the total profit of the enterprise. The core of the methodology was the analysis of margin profit as a generally accepted method of assessing the profitability of goods in the short term. The method is supplemented by an assessment of constraints on both supply and demand, as well as on financing. All iterations are illustrated by calculations based on a model numerical example. The method can be adapted by the user to a specific task, including any number of items in the assortment list, the number and types of resources, the nature of financial constraints or opportunities. The formalization of the use of the proposed model is achieved through the introduction of the developed tables and formulations of explanations to them. The methods can be applied by organizations of different forms of ownership and types of activity, and can also be supplemented by other types of quantitative and qualitative analysis of economic information at the micro and macro levels.