In ordert to increasing the capacity of stocking and integration in the process of optimizing the internal cost in steel industry. The cost of material profolio is usually being ignored during opmization. Experiences-based decision paten still being carried out in material profolio in this industry.Thus the Inventory and Manufacture cost are losing inadvertently. This study aims at obtaining the minimum material profolio cost so that we provide a model concerned with cost and element limitation of target product.Using dynamic programming into material-profolio decision making process. We divided material profolio into three steps, transforming the productive limitations into mathematic constrains,and implememting by software.The real-case data is given to estabilish the model database.Comparing our data with the real data,we found that with the approach, we significately reduced and the cost and variety of material profolio in different critiria