Cost Reduction of Raw Materials in a Steel Factory with Implementation of Mix Problem (A Case Study)

Abstract:

Material cost decrease is an important issue for industrial factories. Operations Research is considered as a proper means for this purpose. A steel production company as a case study is presented in this paper. The combination of raw material is important in steel production. In the company raw materials are mixed experimentally without attention to cost minimization. After considering the process of steel production, a mix model is determined as a proper model for lowering the cost of production in the company. At first, we study the mix problem. Then, we deal with the quantities of the model parameters as well as a mathematical modeling based on the proper constraints. Finally, the solution to the mathematical model is created by a software .The model solution shows that the proposed optimal solution leads to cost minimization significantly.

• Periodical: Advanced Materials Research (Volumes 433-440)
• Pages: 2178-2183
• DOI: https://doi.org/10.4028/www.scientific.net/AMR.433-440.2178
• Online since: January 2012
• Authors: Hamid Reza Moheghi, Hamid Mashhadi Moghadam, Sara Motevali
• Keywords: Liner Programming, Lingo Software, Mix Problem, Steel Production

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