Synthetic Diamond Project Economic Evaluation Based On System Dynamics

In recent years, with the continuous improvement of science and technology and the extension of the application, the artificial diamond has gradually become a indispensable material in microelectronics, optoelectronics, communications, aerospace, aviation and other high-tech fields. At present, our country man-made diamond production accounted for70%of the global total, become the world big country of the first production of artificial diamond. So, invest the artificial diamond project have very good development prospect, but we can not make blind investment, If we don’t make full feasibility study and project economic evaluation in the prior of the implementation of the project,we will not do better to detect and avoid the risk in the project management processing. Finally, it may cause a large capital losses or even bankruptcy Very likely. So, Have the project economy evaluation is very important before investing.In view of the complexity of project economic evaluation, the traditional evaluation method often ignore the interaction between the various constituent elements of the whole project system, thus,don’t take into account the internal system of material and information feedback link. In this paper,have the system dynamics as a tool for study, artificial diamond project economic evaluation system be divided into Market demand sub system、financing investment sub system、 sales revenue sub system、cost sub system、profit sub system、cash flow sub system、assets and liabilities sub system and so on. Through the mutual influence between each subsystem, make economic evaluation on artificial diamond project, and make the system simulation through the Vensim modeling software; test the effectiveness of the model with the sample company——HNZN historical data; and forecast the future of the enterprise20years of operating situation; last, through the model of dynamic simulation curve, analysis of the conclusion is invest this project is feasibly.