The Development Of Raw Material Quality Price Analysis Software For Iron And Steel Enterprises

In the steel production process, the most important and critical aspect is the iron.The spending of raw materials such as iron ore, coke and solvents account for 90% of the costs.Purchase price and raw grade have a big impact on the costs. So how to establish a feasible procurement strategy is a crucial task for Iron and Steel enterprise. We designed the software on balancing the quality and price of raw material, which could provide the decision-making support for the corporation, by analyzing the numerical relationship of quality and price of raw material for the cost and profit of production.In this paper, firstly related models and methods of cost management and control were summarized., related domestic and international literatures on cost management and the development and appliance of decision-making software were contrasted and analyzed as well; secondly according to the current situation of company, by establishing a model of production process and adopting the activity-based costing method, Based on the cost of each branch of the report data and technical data, using Visual Basic language and SQL Server database, considering both of financial analysis and technical analysis, we designed and developed the software on balancing quality and price of raw material. This research includes the following:(1)Based on the analysis of production cost structure and steel company management analysis and demand, the software design framework was built and the appropriate database was selected for carrying out program codes. Firstly, depth-first search method was selected to find out the relation among the raw material quality, price and cost. Then, the Monte Carlo method was selected to calculate the value of the relationship. Finally, through numerical analysis of the relationship, the main function of the quality of raw material price analysis was realized. The contradiction between performance and price was solved and it provide decision support for procurement of raw materials.(2)The software enables interactive function:It can receive the input stream parameters, operating parameters, technical and economic indicators, and empirical formula between each other, also can provide analysis and comparison of empirical and operational data.(3) The software integrates technical and economic data, the various factors associated with the target costs or profits was identified. The analysis of the relationship between the factor and the target costs or profits between was calculated. The computer application in the auxiliary costs decision was enhanced. The raw material cost was analyzed and controlled by the software. As a result, the software can improve the accuracy and timeliness of cost analysis and measurement, and improve decision-making level, create greater economic benefits for the company.