Production Program Decision-Making Investigation Of Nexons's New Plant

This article is taken from a real problem of growing model industrial enterprise in economic life. When the enterprise facing the development opportunity as well as it has stated advantages, how to proceed to production program decision in order to utilize marketing opportunities and self-resources to maximize the benefit. The production program decision here is not only refers the product composing, but more important is allocating resource appropriately; confirming each type product's production scope.Nexons company, which this article demonstrates, has the following characteristics: Firstly, the diversified strategy that the company has owned the main business of multiplicate products belonging to the same trade; Secondly, the advantageous investment chances which the exterior environments bring forth; Third, the interior status of the company's finance and the enlargement of human resources.The approaches, which this article are trying to solve the involved problem, are, firstly, to make the decisions of qualitatively selecting the production program by applying such management theories as Product Life Cycle Theory, Boston Matrix, GE Matrix and wholly analyzing the exterior environment which the company faces and evaluating the status of the resources which it owns; secondly, to decide the scale of each product and make the optimum production program decisions under the conditional restriction of limited resources in order to maximize the gains; finally, to make financial evaluation of the project by the means of net present value (NPV)so as to the shortcomings of the previous decisions focusing on the current maximum gains from the view of time, and validate the investment decisions of the production program.