Research On Raw Material Costing Control Model For Steel Enterprise

Raw material consumption is the main resource of steel production and has been be most important part of cost structure for steel enterprises, however, the force of raw material management in most steel enterprises is not so powerful at present. The traditional allocation of raw material for steel produce pay attention mainly to satisfy the need for the contracts in chemistry element and ignore the efficiency of resources use. That is in precondition of the fixed chemistry element amount and the fixed technology lever, how to contribute the raw material make cost minmum so that the cost can be control well.This thesis has pointed out the tremendous cost pressure the steel enterprises are facing and the necessity of raw material cost control in the background of the price increasing trend for raw material in steel enterprises. It analyzes the existing state of raw material cost control for steel enterprises, and points out the problems of current raw material cost control system.The thesis has set a model for material tracing which is used to acquire the data of out-put, raw material consumption, production flow, process time and so on. It also set the diversion model for producing object and cost object and the diversion model for producing data and cost data. The material tracing model has supplied the data assistance for the cost control model of raw material.This article has established a cost control model for raw materials in steel enterprises. Firstly, it expounds the assumed conditions for this model, then constructs the model in the precondition of fixed output using two mathematic tools- Lagrange and the inhomogeneity system of linear equations, and analyzes the result of the model. Finally, introduces the adjustment process of cost variance which includes the quantity variance and price variance.The last part, it describes the application of the cost control model for raw materials in a steel corporation and compares the result calculated by the model with the actual cost data, so that test the veracity of this model. In the end, it generalizes the functions of this model to the steel enterprises for their cost management system.