The Research Of Optimizing Inventory Management Of S Iron Works Raw Materials

As the domestic steel industry concentration is low, iron and steel enterprises sprawl, leading to serious excess steel capacity, oversupply of steel products; the same time, domestic steel prices are highly dependent on imported ore, the international mining giants monopoly position by virtue of its rising prices of imported ore, the upstream and downstream domestic steel prices by two-way squeeze, high production costs, profitability has dropped significantly. Reduce costs within the domestic steel prices is key to consider.Inventory cost is the main part of the business logistics cost, so inventory management optimization is an effective channel to tap the potential synergies and expand profit margins. Especially for steel companies, the inventory of raw materials usually occupy 70% of corporate liquidity, the original fuel is a wide range and a huge amount. In this case, use the advanced management methods and mathematical models to optimize the raw materials inventory management reasonably, enables enterprises to meet production needs, in the same time, reduce unnecessary inventory costs, accelerate cash flow of enterprise, is an important method to improve the level of corporate profits.This paper selects the raw materials inventory management of S iron works as a research object, and collects a lot of information and data through field investigation, then analyzes it to find the problems of inventory management and the cause of these problems existed in S enterprise. Using qualitative and quantitative analysis method and case study, this paper researches on the raw materials operation inventory management and inventory control, and combines various inventory control methods to solve the problems of S iron works.First of all, in terms of the operation inventory management, with the combination of using AHP and integer programming, this paper searching a storage location decision making pattern, which considering the factors of material variety, origin, and the utilization of stockyard space, working machines and materials, to replace the traditional pattern that relies on experience, in order to solve the problem of ore yard low operation efficiency. Second, in terms of the inventory control,this paper using time series seasonal index to make demand forecast, which promoting the accuracy of raw materials demanding forecast; and for the characteristics of existence for the original fuel stocks of The S iron works, considering the funds used, the price fluctuations, consumption and so on, this paper using clustering analysis principle, and classifies the original fuel materials reasonably, at the same time, according to the different kinds of raw material and fuel characteristics, put forward two kinds of inventory control strategy, in order to solve the problems of the original fuel classification and lack of inventory control strategy. Through research and methods used can provide some references for S iron works.