Company B Stainless Steel Charge Cost Optimization Model Design And Practice

This paper discussed the optimization of the cost of the burden of stainless steel production. To increase the efficiency of production in Company B, the author analyzed fundamental conditions of stainless steel production and put forward the main idea and method for optimizing the cost of the burden based on mathematical analysis.The author stated the factors related with the optimization of the cost of the burden including names of burdens, their codes, related standards, pricing system, the yield of burdens and the cost performance of burdens. Carbon steel and alloys were separately stated in terms of the cost performance with examples. It was found that there was a potential to optimize the cost of the burden.A model has been designed for the cost of the burden of AISI304, which is a typical steel grade in Company B. The break-even point of conversion between stainless steel scrap and nickel has been deduced from the model. The theoretical basis of the parameter R for purchasing decision has been posed. It also stated the determination of return ratio K, application of the model and examples from practice.The design principle of the model for the cost of the burden of AISI304 has been applied for other steel grades. The model for forecast of the cost of the burden of AISI304 has been modified with the verification in practice. Two methods have been put forward to forecast the cost of the burden of non-304 grades. A simulation operation has been carried out, which showed that rational burden mixes and remarkable economic returns were achieved based on the purchasing decision on the base metals of stainless steel.Optimization of the cost of the burden of stainless steel production is always a focus of the stainless steel manufacturers. The application of the model for optimization of the cost of the burden showed its economic values in practice, which provided a reference for stainless steel manufacturers.