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A Linear Programming Model of Integrated Iron and Steel Production

Author

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  • Tibor Fabian

    (University of California, Los Angeles)

Abstract

Integrated steel mills usually have a choice over the use of various materials and production processes. Different ores may be used in the production of iron; steel scrap and iron can be used in different proportions in the production of steel. The economical usage rate of all materials is a function of numerous variables, among which the market price of some materials, notably of various grades of steel scrap, fluctuates and therefore requires a periodic determination of the economical usage rate. This is a typical problem for programming. The paper presents a mathematical formulation of the stages of iron and steel production to determine the optimal (least cost) rate of input of materials. The models of the various stages of production are connected to form a "master model" of an integrated steel mill.

Suggested Citation

  • Tibor Fabian, 1958. "A Linear Programming Model of Integrated Iron and Steel Production," Management Science, INFORMS, vol. 4(4), pages 415-449, July.
    • Handle: RePEc:inm:ormnsc:v:4:y:1958:i:4:p:415-449
    DOI: 10.1287/mnsc.4.4.415
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    Cited by:

    1. Fröhling, Magnus & Schwaderer, Frank & Bartusch, Hauke & Rentz, Otto, 2010. "Integrated planning of transportation and recycling for multiple plants based on process simulation," European Journal of Operational Research, Elsevier, vol. 207(2), pages 958-970, December.
    2. J. F. F. Almeida & S. V. Conceição & L. R. Pinto & B. R. P. Oliveira & L. F. Rodrigues, 2022. "Optimal sales and operations planning for integrated steel industries," Annals of Operations Research, Springer, vol. 315(2), pages 773-790, August.
    3. Chang, Jiyoun C. & Graves, Stephen C. & Kirchain, Randolph E. & Olivetti, Elsa A., 2019. "Integrated planning for design and production in two-stage recycling operations," European Journal of Operational Research, Elsevier, vol. 273(2), pages 535-547.
    4. Goutam Dutta & Robert Fourer, 2001. "A Survey of Mathematical Programming Applications in Integrated Steel Plants," Manufacturing & Service Operations Management, INFORMS, vol. 3(4), pages 387-400.
    5. Alan S. Manne, 1961. "Input-Output and Activity Analysis in Industrial Concerns," Cowles Foundation Discussion Papers 118, Cowles Foundation for Research in Economics, Yale University.
    6. As'ad, Rami & Demirli, Kudret, 2010. "Production scheduling in steel rolling mills with demand substitution: Rolling horizon implementation and approximations," International Journal of Production Economics, Elsevier, vol. 126(2), pages 361-369, August.
    7. Wichmann, Matthias Gerhard & Spengler, Thomas Stefan, 2015. "Slab scheduling at parallel continuous casters," International Journal of Production Economics, Elsevier, vol. 170(PB), pages 551-562.

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