Nosov Magnitogorsk State Technical University (Magnitogorsk, Russia):

Vasilyeva N. F., Cand. Econ., Ass. Prof., e-mail: nfvasilyeva@mail.ru
Vasilyeva N. T., Cand. Eng., Ass. Prof.

Moscow Psichology and Sociology Institute, affiliate (Magnitogorsk, Russia):
Pimonova T. K., Cand. Econ., Ass. Prof., Head of the Chair of Humanitarian and Social-Economical Sciences

The problem of the material stocks management is always actual in the conditions of a high material capacity of production process in iron and steel industry. At the present time production stocks control systems in Russian metallurgical companies demand the substantiation of such management approach which is based on assessment and accounting the developed model of the branch vertical market and accompanying conditions of the contract relations formation. The goal of this work is to associate the market with the types and conditions of the contracts that are the standpoint determining approaches to managing production stocks. In present report the authors analyzed the types and conditions of the contracts concluded between suppliers and buyers, depending on market structure, and using analytical, deductive and scientific methods; the structure of raw material market for iron and steel industry is considered. The failure of the vertical raw material market for iron and steel industry, being the field of forming the contractual relationships is revealed; types and conditions of the contracts corresponding the specified market are defined. The obtained results can be used in development of production stocks control systems for the companies that operate in conditions of the imperfect market. The results of research allow to conclude that logistic approaches based on the cost-minimizing reorder point cannot be used in the iron and steel industry.

1. Korporativnaya logistika. 300 otvetov na voprosy professionalov (Corporate logistics. 300 answers on professional questions). Under the general and scientifi c editorship of V. I. Sergeev. Moscow : INFRA-M, 2008. 976 p.
2. Logistika i upravlenie tsepyami postavok : uchebnik dlya akademicheskogo bakalavriata (Logistics and management of supply chains : tutorial). Under the editorship of V. V. Shcherbakov. Moscow : Yurayt, 2015. 582 p.
3. Michel R. Leenders, Harold E. Fearon. Upravlenie snabzheniem i zapasami. Logistika (Purchasing and Supply Management). Translated from English. Saint Petersburg : Poligon, 2006. 768 p.
4. Oleynik A. N. Institutsionalnaya ekonomika : uchebnoe posobie (Institutional economics : tutorial). Moscow : INFRA-M, 2002. 416 p.
5. Campbell R. McConnell, Stanley L. Brue. Ekonomiks: printsipy, problemy i politika (Economics: Principles, Problems, and Policies). Translated from English. Moscow : IFRA-M, 2015. 1027 p.
6. James M. Buchanan. Sochineniya. Konstitutsiya ekonomicheskoy politiki. Raschet soglasiya. Granitsy svobody (The Collected Works. The Constitution of Economic Policy. The Calculus of Consent. The Limits of Liberty). Nobelevskie laureaty po ekonomike. Tom 1 (Economics Nobel prize winners. Volume 1). Moscow : Economic Initiative Fund, Taurus Alfa, 1997. 560 p.
7. Oliver E. Williamson. Ekonomicheskie instituty kapitalizma. Firmy, rynki i «otnoshencheskaya» kontraktatsiya (The economic institutions of capi talism. Firms, Markets, Relational Contracting). Saint Petersburg : Lenizdat, 1996. 702 p.
8. John Stuckey, David White. Kogda nuzhna i ne nuzhna vertikalnaya integratsiya (When and when not to vertically integrate). Мсkensey. 2004. No. 3(8).
9. Zhuravleva G. P. Ekonomicheskaya teoriya. Mikroekonomika. Tom 1, 2 : uchebnik (Economic theory. Microeconomics. Volume 1, 2 : tutorial). Moscow : Dashkov and CO, 2016. 934 p.
10. Radygin A. D. et al. Rynochnaya distsiplina i kontrakty: teoriya, empiricheskiy analiz, pravo (Market discipline and contracts: theory, empirical analysis, law). Moscow : Gaidar Institute for Economic Policy, 2008. 263 p.
11. Rayzberg B. A., Lozovskiy L. Sh., Starodubtseva E. B. Sovremennyy ekonomicheskiy slovar (Modern economic dictionary). Under the general editorship of B. A. Rayzberg. Moscow : INFRA-M, 2013. 512 p.
12. Pleshchenko V. I. Institutsionalnyy aspekt materialno-tekhnicheskogo snabzheniya predpriyatiy chernoy metallurgii (Institutional aspect of material and technical supply of ferrous metallurgy enterprises). Chernaya metallurgiya = Ferrous Metallurgy. 2012. No. 1. pp. 75–81.