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The Impacts of By-products on Optimal Supply Chain Design

In: Geometric Modelling, Numerical Simulation, and Optimization

Author

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  • Marielle Christiansen

    (Norwegian University of Science and Technology, Department of Industrial Economics and Technology Management)

  • Roar Grønhaug

    (Norwegian University of Science and Technology, Department of Industrial Economics and Technology Management)

Abstract

During the last half decade, the metal industry has been in a harsh situation seeing their profit margins squeezed to an extreme. Many companies have been forced to close down furnaces and plants. To help a major metal producing company manage this process, we developed a strategic mixed integer programming model. The main decisions addressed by the model involve the future plant structure and production capacities, the production portfolio at each plant and the by-product production. Here, we present the underlying MIP-model and give computational results. In addition, we show how the valuable by-product production can have impact on the optimal supply chain design.

Suggested Citation

  • Marielle Christiansen & Roar Grønhaug, 2007. "The Impacts of By-products on Optimal Supply Chain Design," Springer Books, in: Geir Hasle & Knut-Andreas Lie & Ewald Quak (ed.), Geometric Modelling, Numerical Simulation, and Optimization, pages 497-520, Springer.
  • Handle: RePEc:spr:sprchp:978-3-540-68783-2_15
    DOI: 10.1007/978-3-540-68783-2_15
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