Design of material ordering strategy in procurement supply chain

To the problem that different materials need different ordering policies in Baosteel procurement and supply chain systems, a material order quantity model is presented and the empirical formula for material safety stock setting is given. For the practical application process, in which some probability distribution can not accurately be found, the material demand and consumption are forecasted by using the gray model. Through forecasting the demand of materials, the safety stock of materials is set. The different order quantity models are used for different materials to resolves the problem of order strategy in procurement supply chain systems. Examples show that the ordering strategy model has a strong practical significance to provide users with a good ordering strategy.