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Financial Analytics: Science and Experience
 

Formation of a portfolio of orders for iron and steel enterprises using a marginal analysis

Vol. 10, Iss. 6, JUNE 2017

PDF  Article PDF Version

Received: 9 February 2017

Received in revised form: 29 March 2017

Accepted: 5 April 2017

Available online: 15 June 2017

Subject Heading: MATHEMATICAL ANALYSIS AND MODELING IN ECONOMICS

JEL Classification: D24, D29, L29, L61

Pages: 675-690

https://doi.org/10.24891/fa.10.6.675

Danilenko N.I. Magnitogorsk Branch of Russian Presidential Academy of National Economy and Public Administration, Magnitogorsk, Chelyabinsk Oblast, Russian Federation
danilenko-nikolay@mail.ru

Zambrzhitskaya E.S. Nosov Magnitogorsk State Technical University, Magnitogorsk, Chelyabinsk Oblast, Russian Federation
jenia-v@yandex.ru

Mamaeva A.V. Nosov Magnitogorsk State Technical University, Magnitogorsk, Chelyabinsk Oblast, Russian Federation
mamaeva_29_12@mail.ru

Importance The article discusses the issues of order portfolio formation at industrial enterprises.
Objectives The article aims to formalize the procedure of order book formation and build an appropriate algorithm at steel plants.
Methods For the study, we used a method of analyzing the possibility of using break-even.
Results In this article, we introduce an analysis of the problem of order book formation at steel enterprises. We also introduce a concept of break-even point of order and propose a required algorithm inclusive of different variants of order intake. Particular attention is paid to the order book formation with contracts which do not have a fixed structure of supplied products.
Conclusions and Relevance Using the break-even point of order index is most preferred comparing the other characteristics (marginal income, rentability, etc.). The main advantage of the offered index is a possibility to take into account that orders are received not simultaneously, so each particular one is be considered. The proposed methods can improve the efficiency of order book formation at modern enterprises making it economically reasonable and regulated. This will help avoid possible losses.

Keywords: enterprise, production order, break even point, product assortment, break-even analysis

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