The Application of CVP Analysis in Companies from the Taxi Industry Based on Simulation Results: The Empirical Evidence from Poland

Abstract:

The specificity of the work of taxi companies operating at airports has been presented in this paper. Attention was drawn to the importance of conducting the CVP analysis, which is aimed at increasing the efficiency of operations of this type of enterprises. In order to make this possible, it is necessary to precisely define in advance and under real conditions the scope of services provided, as well as various scenarios of the transport offer. It is, therefore, reasonable to use simulation methods that enable quick and reliable comparison of the potential effects of implementing individual solutions.

The author's own simulation model is universal, it can be used to analyse the taxi service of any airport serving the city to which it belongs. The model makes it possible to determine the percentage of profitable trips (i.e. with a client) and to determine the duration of individual service processes, such as acquiring a client , the trip itself or operating activities when alighting and boarding. At the same time, the variability of duration of the above service processes has been taken into account, including the variability of the travel time resulting from changing traffic conditions. It is the stochastic nature of the model that enables a significant increase in the quality of CVP analyses. An example of using the model to determine the optimal division of the day into work shifts as one of many of its applications has been presented in this paper.