Optimal Study On The Raw Material Inventory Problem In Iron And Steel Enterprises Considering Historical Data

Iron and steel industry is one of the fundamental industries of national economy,it consumes lots of resources and energy.Under pressure of fierce competition and rising price of raw materials,nowadays iron and steel companies are managing to lower their cost spent on purchase and inventory.A company's production run requires appropriate inventory level,which will cause unnecessary economic losses,if too high or too low.Especially for steel companies,the inventory of raw materials usually occupy 70%of corporate liquidity,so how to improve the raw material inventory control strategies and optimize raw materials inventory levels is of huge economic benefits by reducing inventory costs of raw materials.The paper mainly has done three parts of work,as follows:1)Questions and Analysis:The paper studies the background on the purchase and inventory of raw materials and lists out the characteristics of the problem,and then several optimization strategies are abstracted.2)Analysis of historical data:Investigating into the historical data and uncovering the existing problems from the data.3)Modeling and solving of raw materials purchase and inventory problem:Though in-depth analysis of the characteristics of the inventory of raw material,the paper builds an LP model which combines historical data and optimization in a single frame,and then solve it with standard optimization software CPLEX.