Preliminary communication

The model for the calculation of the dispersed iron ore resource purchase cost in the world class manufacturing (WCM) logistics pillar context

M. Dudek ; AGH University of Science and Technology, Krakow, Faculty of Management, Poland

Abstract

In the blast-furnace production, raw materials may account for approx. 50 % of the pig-iron manufacture costs. Therefore, any, even small, saving in the sphere of raw material purchasing will translate into the reduction in the cost of the pig-iron manufacture. The selection of appropriate supply sources and the associated raw material quality influencing the economic viability of the charge blend constitutes a multi-faceted optimization task. The paper presents a modified model for production cost estimation at the moment of making raw material purchasing, which is possible to be used in the logistics pillar of the WCM concept.

Keywords

Iron ore; costs; pig-iron; value in use

Hrčak ID:

122190

URI

https://hrcak.srce.hr/122190

Publication date:

1.10.2014.

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