Research On The Production Decision Of W Chemical Company Based On The Cost-Volume-Profit Analysis

Process industry (chemical, metallurgy, oil refining, paper making, food processing, power etc.) is an important part of our national economy. It refers to the production process through physical and chemical changes, its raw materials and products for homogeneous phase (solid, liquid or gas) materials. In recent years, our country of process industry is the poor efficiency, main show "two high and two low" is the remarkable characteristics of high energy consumption and high cost, low productivity and low resource utilization rate.Process oriented enterprises attach importance to technological equipment, despise production management; stabilization emphasizes the process parameters, but neglect should be according to the change of market demand and the organization of production products, due to lack of adequate production flexibility and failed to obtain the proper economic benefit. With the diversification of customer demand, the market competition is becoming increasingly fierce, more and production management method of flow type traditional more impropriety.With the aggravation of the market competition, enterprises in order to spread the risks, often produce and sale of various products. In general all kinds of product profitability is not exactly the same, sometimes the difference is relatively large. Therefore, the CVP multi variety production enterprise analysis, to determine the optimum production combination scheme of enterprise profit, productive stage of the most lucrative product to obtain the maximum profit for the enterprise production decision, it has a higher theoretical significance and strong practical significance.CVP analysis is an important management tool for enterprise to forecast, decision and cost control, is one of the practical technology of the modern enterprise management, plays an important role in the enterprise management.The CVP analysis method is applied to the production planning process enterprise, can be based on cost, yield, profit between the three relations to solve the production decision in the " what to produce, how much to produce" problem.This paper takes W company as an example of the actual production situation, in the construction of a mathematical model of cost volume profit analysis method based on the existing theory, fully absorb the information and the practicality and analyses fully the qualitative. Then through a large number of actual data support for quantitative analysis, the analytical results obtained, used to guide the production practice.