Optimization System Of Raw Material Yard In Iron And Steel Industry

The raw material yard of iron and steel company is the central repository of all the raw materials that the steel production process needs and the preparation stage of the whole steel production process. The logistics of raw materials studied in this paper include procurement, transport, transfer, storage, processing and delivery of raw materials. Based on in-depth analysis of these processes, the paper not only develops the logistic management system of the raw material yard, but also extracts several logistics optimization problems. In these problems, we focus on the raw material inventory optimization problem.A company’s production run requires appropriate inventory level, which will cause unnecessary economic losses. if too high and too low. Especially for steel companies, the inventory of raw materials usually occupy70%of corporate liquidity, so how to improve the raw material inventory control strategies and optimize raw materials inventory levels is of huge economic benefits by reducing inventory costs of raw materials.The paper mainly has done four parts of work, as follows:1) Questions and Analysis:The paper studies the background on the logistics of raw materials yard and introduces the characteristics of the logistics of raw materials yard, then several optimization problems are abstracted.2) Modeling of raw materials inventory problem:Though in-depth analysis of the characteristics of the inventory of raw material, the paper builds a MILP model in order to minimize inventory costs. The model has considered the capacity constraints of raw material yard and can help formulate the best inventory levels and purchase the best time purchasing interval of various raw materials.3) Solving the model:As the inventory model has nonlinear constraint, most optimization software can not solve this problem. The paper proposes the Benders decomposition algorithm to solve the problem, decomposing the model into restricted master problem and sub problem. By the calculation of the actual data, the validity of the model and algorithm is proved.4) Designing and development of the optimization system:Because of the complexity of the logistic processes in the raw material yard, manual reporting and scheduling management has been difficult to match the requirements and achieve satisfied results. Therefore, the optimization system of raw material yard in iron and steel industry has been designed and developed, which centralizes the management of various logistics information and all the operational processes in order to improve the efficiency and quality as well as promote the management level of raw material access in steel industry.