Product inventory model of iron and steel enterprises

Yuanmin Xie 

The Key Laboratory for Metallurgical Equipment and Control of the Ministry of Education, Wuhan University of Science and Technology, Wuhan, 430081, China

As a pillar industry, iron and steel industry has made a significant contribution to China’s economic development. Steel and iron inventory is a hot research issue in the supply chain management. How to make use of advanced management methods and mathematical models to obtain reasonable inventory to meet customer service and reduce unnecessary inventory-related costs, and accelerate corporate capital turnover rate, is the goal that the enterprises should pursue in the future. According to the batch production of iron and steel enterprises, and in consideration of inventory-related costs, including fixed costs, storage costs, shortage costs (including deferred delivery costs and lost sales costs), establish the model of finished products inventory cost. When calculate model, we make c + + program and do accurate calculation to the model, optimize the production cycle, production time and production quantities, and define the deferred delivery coefficients. By changing the value of the deferred coefficient, analyse the influence to the production cycle, production time and production quantities and all kinds of costs.