Modeling and solution to integrated production and logistics planning of steel making and hot rolling
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    Abstract:

    Reasonable inventories of steel slabs and hot-rolled coils,shortening production cycles,reducing energy consumption and improving customer’s satisfaction by delivering goods on contracts are requirements in operations management in iron and steel industry. To reduce the production and logistics costs,considering different capacities and conflicting constraints,this paper present an integrated production and logistics planning model based on the characters of production and connection between steel making and hot rolling. We analyzed the extreme points of the uncapacitated hot rolling lot size polytope with backlogging and developed an equivalent mixed-integer programming formulation by applying combination of Dantzig-Wolfe decomposition and set partitioning to the original problem. The lower bound is obtained by column generation processing. Furthermore,we developed a heuristic algorithm to find initial solutions and improve them by branch and bound. Computational experiments presented randomly were tested and compared. The result shows that the satisfied solutions could be obtained by the proposed algorithm. Meanwhile,analysis of cost structures shows it is necessary to improve the hot slab charge rate and balance the production and logistics components.

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  • Online: April 17,2018
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