Study On The Decision - Making Method Of Fixed Assets Investment In Cement Enterprises And Its Application

The cement industry in China is facing with the serious situation of excess capacity and environmental impact. It is imposed important influence on the fixed assets investment decision-making of the cement enterprises. The conventional decision-making methods maybe produce error result because of just depending on economic index. So the enterprises raise an urgent requirement for the decision-making method of fixed assets investment, which can effectively accommodate this situation.In this paper, the research method is proposed to accommodate with the situation of excess capacity and environmental impact, which is based on the fixed assets investment manager of cement enterprises. And the method is researched by multi dimensions of investment climate, the theory of decision-making, the rules and indexes of decision-making and the building model. The main research issues and achievements in this paper are as following:1. Decision-making method of cement enterprises fixed assets investment based on the fusion of multiple factorsAccording to investment climate of cement industry in our country, the decision-making system of fixed assets investment is built by introducing multi-factor of economy, capacity and environmental, and then the method is proposed to cement enterprises fixed assets investment evaluation. Compared with the conventional methods based on financial analysis, the approach can introduce capacity and environmental factors and effectively avoid defects caused by single financial data. The approach provides a new effective way for the fixed assets investment decision-making of the cement enterprises.2. Rules and indexes analysis of the fixed assets investment decision-making of the cement enterprises.In this paper, the main factors are indicated about economy, capacity and environmental, and then the system of fixed assets investment is built for the fixed assets investment decision-making. This system is composed of economy rule, capacity rule and environmental rule. Capacity rule includes two indexes, both policy index and project index. And environment rule includes environmental cost index and environmental benefits index.3. Investment climate and theories analysis of the fixed assets investment decision-making of the cement enterprises.The topics are expounded and researched for investment climate of the fixed assets investment decision-making of the cement enterprises such as the history of the cement industry in China, status, and development trends. And the literatures are researched in the macro-policy, regulation, standards, and agreements about excess capacity and environmental impact. And then, the conventional decision-making methods are summarized and researched, which include the principle, flow and evaluation rule of dynamic decision-making methods and static decision-making methods. And then the theory of AHP, Analytic Hierarchy Process is introduced.4. Technology validationBased on the above framework and key techniques presented, a real case has been implemented on BSK Corporation, which is about the fixed assets investment decision-making of cement grinding mill. And the results show that the theory is correct and the method is feasible.