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Automatic and Managing Systems
ArticleName Assessment of the possibility of usage of logistic approaches in creation of production stocks control systems at the iron and steel enterprises
ArticleAuthor N. F. Vasilyeva, N. T. Baskakova, T. K. Pimonova
ArticleAuthorData

Nosov Magnitogorsk State Technical University (Magnitogorsk, Russia):

Vasilyeva N. F., Cand. Econ., Ass. Prof., e-mail: nfvasilyeva@mail.ru
Vasilyeva N. T., Cand. Eng., Ass. Prof.

 

Moscow Psichology and Sociology Institute, affiliate (Magnitogorsk, Russia):
Pimonova T. K., Cand. Econ., Ass. Prof., Head of the Chair of Humanitarian and Social-Economical Sciences

Abstract

The problem of the material stocks management is always actual in the conditions of a high material capacity of production process in iron and steel industry. At the present time production stocks control systems in Russian metallurgical companies demand the substantiation of such management approach which is based on assessment and accounting the developed model of the branch vertical market and accompanying conditions of the contract relations formation. The goal of this work is to associate the market with the types and conditions of the contracts that are the standpoint determining approaches to managing production stocks. In present report the authors analyzed the types and conditions of the contracts concluded between suppliers and buyers, depending on market structure, and using analytical, deductive and scientific methods; the structure of raw material market for iron and steel industry is considered. The failure of the vertical raw material market for iron and steel industry, being the field of forming the contractual relationships is revealed; types and conditions of the contracts corresponding the specified market are defined. The obtained results can be used in development of production stocks control systems for the companies that operate in conditions of the imperfect market. The results of research allow to conclude that logistic approaches based on the cost-minimizing reorder point cannot be used in the iron and steel industry.

keywords Metallurgy, iron and steel industry, logistics, management, conditions of contract, production stocks, market failure, vertical intrgration
References

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