IDEAS home Printed from https://ideas.repec.org/a/ura/ecregj/v1y2017i1p170-182.html
   My bibliography  Save this article

Regional Logistics of Procurement of the Ferrous Scrap by the Iron-and-Steel Companies of the Russian Federation

Author

Listed:
  • Tatiana Ivanova

    (Nosov Magnitogorsk State Technical University)

  • Violetta Trofimova

    (Nosov Magnitogorsk State Technical University)

  • Alexandr Kalitaev

    (Nosov Magnitogorsk State Technical University)

  • Dmitry Stepanov

    (JSC "Profit")

Abstract

The article discusses the relevant problem of iron-and-steel companies saving on purchasing the scrap metal. The analysis of the current state of the ferrous scrap market in the Russian Federation, trends of its development, led the authors to an opportunity to reduce the cost for purchasing scrap trough the optimal distribution of the regions between Russian iron-and-steel companies where they purchase ferrous scrap. The optimization of the regional structure of the scrap procurement taking into account the regional volumes of its generation and consumption results from using the linear programming methods applying three variants of the problem statement: minimizing the total cost of the scrap delivery to the factory, minimizing the total cost of the scrap at the “export parity†price with delivery, minimizing the total cost of the scrap at the actual prices with delivery. The authors have developed software for performing the calculations. The source are the database of the JSC Russian Railways, which provides information about the transportation of the ferrous scrap between stations of the Russian Federation by railroad; railway rates guide between railway stations of the Russian Federation; statistical data on the prices for scrap metal of the type 3A in “export windows†; actual purchasing prices for the scrap of the 3A type for the range of separate companies of the Russian Federation for several years. As a result, the authors have obtained the optimal regional structure of scrap purchasing for customers in the Russian Federation. We have formulated the recommendations for individual companies regarding the optimal routes of the procurement with scrap. The study has confirmed the possibility to decrease expanses for purchasing the scrap metal for all iron-and-steel factories of the Russian Federation through the optimization of the regional structure of procurement. It is also has allowed to estimate the possibility to cut expenses by using the optimal strategies allowing to choose the region of procurement.

Suggested Citation

  • Tatiana Ivanova & Violetta Trofimova & Alexandr Kalitaev & Dmitry Stepanov, 2017. "Regional Logistics of Procurement of the Ferrous Scrap by the Iron-and-Steel Companies of the Russian Federation," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(1), pages 170-182.
    • Handle: RePEc:ura:ecregj:v:1:y:2017:i:1:p:170-182
    as

    Download full text from publisher

    File URL: http://economyofregion.ru/Data/Issues/ER2017/March_2017/ERMarch2017_170_182.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Albertson, Kevin & Aylen, Jonathan, 1996. "Modelling the Great Lakes freeze: forecasting and seasonality in the market for ferrous scrap," International Journal of Forecasting, Elsevier, vol. 12(3), pages 345-359, September.
    2. Evans, Mark, 2006. "A study of the relationship between regional ferrous scrap prices in the USA, 1958-2004," Resources Policy, Elsevier, vol. 31(2), pages 65-77, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jonathan Aylen & Kevin Albertson & Gina Cavan, 2014. "The impact of weather and climate on tourist demand: the case of Chester Zoo," Climatic Change, Springer, vol. 127(2), pages 183-197, November.
    2. Pami Dua & Lokendra Kumawat, 2005. "Modelling and Forecasting Seasonality in Indian Macroeconomic Time Series," Working papers 136, Centre for Development Economics, Delhi School of Economics.
    3. Albertson, Kevin & Aylen, Jonathan, 2003. "Forecasting the behaviour of manufacturing inventory," International Journal of Forecasting, Elsevier, vol. 19(2), pages 299-311.
    4. Albertson, Kevin & Aylen, Jonathan, 1999. "Forecasting using a periodic transfer function: with an application to the UK price of ferrous scrap," International Journal of Forecasting, Elsevier, vol. 15(4), pages 409-419, October.
    5. Patrik Söderholm & Tomas Ekvall, 2020. "Metal markets and recycling policies: impacts and challenges," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 33(1), pages 257-272, July.
    6. Evans, Mark, 2006. "A study of the relationship between regional ferrous scrap prices in the USA, 1958-2004," Resources Policy, Elsevier, vol. 31(2), pages 65-77, June.
    7. T. V. Krishna Mohan & R. K. Amit, 2020. "Dismantlers’ dilemma in end-of-life vehicle recycling markets: a system dynamics model," Annals of Operations Research, Springer, vol. 290(1), pages 591-619, July.
    8. De Gooijer, Jan G. & Hyndman, Rob J., 2006. "25 years of time series forecasting," International Journal of Forecasting, Elsevier, vol. 22(3), pages 443-473.
    9. Jan G. De Gooijer & Rob J. Hyndman, 2005. "25 Years of IIF Time Series Forecasting: A Selective Review," Monash Econometrics and Business Statistics Working Papers 12/05, Monash University, Department of Econometrics and Business Statistics.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ura:ecregj:v:1:y:2017:i:1:p:170-182. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alexey Naydenov (email available below). General contact details of provider: http://www.economyofregion.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.