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

Sa？etak 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