The article considers the formation of a methodical approach to the management of the ferrous scrap supply system at Russian metallurgical enterprises. The aim of the approach is to determine system indicators: scrap purchase prices of a specific metallurgical enterprise for the period, the purchase volume of scrap during that period, the cost of pre-production preparation, transportation costs, and alternative costs (costs of withdrawing cash from circulation as it gets “frozen| in the stockpiles of scrap), within the given planning horizon. The content of the organizational and methodical aspects of the following approach stages in the process of formation are reviewed: 1) elaboration of a model for predicting the price for scrap of a metallurgical enterprise with consideration of the influence of the external environment, and 2) development of an algorithm for determining the purchase volume of ferrous scrap, including the purchase for current consumption and inventories replenishment, using price forecasts for planning purposes. A criterion of the feasibility of implementing the developed approach is an improvement of the performance of the system that shows in decreased costs for ferrous scrap when compared to the result of the existing approaches to system management. The practical applicability of the approach is investigated by performing calculations based on scrap supplies for JSC «VTZ» on the basis of actual scrap purchase prices in 2015. The calculations concluded that the company could have saved RUB 53m, had it purchased scrap on the proposed adjusted schedule, assuming the completion of its production plans for 2015.
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