Simulation And Optimization Research For Steel Company’s Logistics Cost Control System

As one of traditional large-scale manufacturing industry,the process production of iron and steel enterprise’s is complex,its consumption of raw materials is large and its product transportation is diversity.Therefore,in the production process of production,the iron and steel enterprise should pay more attention to the effective control of the logistics cost to reduce the total cost of the enterprise,thus to maintain the competitiveness of enterprises in the international market.The former research of iron and steel enterprises logistics cost control mainly analyzed from a specific logistics link,not from the whole system.As everyone knows that in the process of enterprise logistics cost control,there is a "trade-off" phenomenon between some of the logistics system,the effective control of a subsystem of logistics cost may brings other subsystem of the logistics cost’s going up.Therefore,in the study of iron and steel enterprises logistics cost control problems,we should base on the whole system thus to realize the goal of lowest cost.This paper first introduces the meaning of iron and steel enterprises logistics cost control,and its content;then,this paper introduces the present situation of the cost control of B iron and steel enterprises by taking B Iron and steel enterprise as an example,and analyzes the existing logistics cost control problems;after this,this paper uses the method of system dynamics to construct a system dynamics model of B iron and steel enterprise logistics cost control system with the help of Vensim simulation software.The actual data of B in iron and steel enterprise are input into the model;then,through the analysis of simulation results,we put forward three strategies of B in iron and steel enterprise logistics cost are mainly from inventory and transportation cost control,cost control and production process of the logistics control.We simulate these three strategies by using the proposed model,so as to draw the conclusion of this paper.Finally,we summary the full text and put forward the direction of future research.The results of this study show that,There is still room for B steel enterprise logistics cost control system’s improvement.The proposed three strategies can effectively reduce the cost of logistics enterprises.In the actual logistics cost control,B iron and steel enterprises should combine the three strategies to achieve the best results.At the same time,this study also shows that the simulation method based on system dynamics is very suitable for the problem of logistics cost control,and it is also a research direction in future of logistics cost control problems.