The scrap based management of iron ore consumption system is mandatory for smooth operation of Steel Bloom manufacturing. In a conventional method as per the ministry of steel, the iron ore stock per the number of days is determined based on total steel and daily steel requirement,but the steel is measured only once. The total steel available is an approximation based on the orders placed. The idea is to place the Conventional sensor(weight sensor) at the Stacker of the steel plant where total iron ore is available before pulverization. The inputs for the Management system are total iron ore at stacker(manual entry can be provided if stacker is full and iron ore stack is necessary. The data in weight sensors at the stacker and before the Steel Bloom manufacturing is updated continuously to the data server using IoT. The algorithm also takes the values of orders already placed, and ongoing delivery for reliability and accuracy in the system. The algorithm gives the outputs like total stock available, order requirements in a specified periodical range(10days), a total number of working days of plant for available stock, and also alarms indicate when there is an outage in stock. It can also be automated for placing orders by verifying the costs and delivery time of listed stakeholders (companies). All the values are displayed in the output and the algorithm can also simulate the values before placing orders based on financial and alternative energy source considerations.