Specifics of formation the portfolio of orders on the basis of break even analysis for Iron and Steel Works

Abstract

The issue of orders portfolio formation becomes more and more actual in terms of evolving economy crisis, consequences of which turned into the growing competition both in domestic and foreign markets. Goals of research – formalization of order portfolio formation procedure. The purpose of our academic research – to develop the algorithm for order portfolio formation suitable for iron and steel works. The article suggests the possibility of using break-even analysis indices, in particular, the research introduces a «break-even point» concept in terms of efficient order portfolio. Usage of break-even point indices is more preferable to others (marginal revenue, cost-effectiveness and etc.) the main advantages of the suggested analysis are: 1) great information capacity from the point of management decision making; 2) the suggested analysis is less governed by price factor than marginal revenue.